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HomeMy WebLinkAboutItem 09 Proposed Updates to Municipal Code 2.700 Through 2.718 and Adding Section 2.709 AGENDA ITEM SUMMARY Meeting Date: 11/19/2012 Meeting Type:Regular Meeting Staff Contact/Dept.: Bob Duey/Jayne McMahan// FIN Staff Phone No: Ext 3740//3708 Estimated Time: Consent Calendar S P R I N G F I E L D C I T Y C O U N C I L Council Goals: Provide Financially Responsible and Innovative Government Services ITEM TITLE: PROPOSED UPDATES TO MUNICIPAL CODE 2.700 THROUGH 2.718 AND ADDING SECTION 2.709 ACTION REQUESTED: Conduct a second reading and adopt/not adopt the following ordinance: AN ORDINANCE OF THE COUNCIL OF THE CITY OF SPRINGFIELD AMENDING SECTIONS 2.700 THROUGH 2.718., "PUBLIC CONTRACTS" OF THE SPRINGFIELD MUNICIPAL CODE AND SPECIFICALLY SECTIONS 2.702, 2.703, 2.704, 2.706, 2.708, 2.712 AND ADDING SECTION 2.709 TO THE SPRINGFIELD MUNICIPAL CODE. ISSUE STATEMENT: Following the October 8, 2012 Work Session and the November 5, 2012 Regular Session the changes to the Municipal Code 2.700 through 2.712 and added section 2.709 are being recommended as set forth in the attached draft ordinance. The State of Oregon Legislature passed HB3316 which requires the City to update our Municipal Code surrounding how we select certain consultants for engineering, surveying and architectural professional services. The changes also present the Council with choices as to whether to adopt certain cost savings and process improvement by updating the dollar threshold for the formal solicitation process, and include the use of electronic means for solicitations and contract execution. ATTACHMENTS: Attachment 1 - Council Briefing Memorandum Attachment 2 - Ordinance w/ Attachment 1 Municipal Code Changes DISCUSSION/ FINANCIAL IMPACT: During the Oct. 8th Work Session and the Nov. 5th Regular Session First Reading the Council considered the following updates to the municipal code: 1. HB3316 passage requires the use of a qualifications based selection process only (price cannot be an evaluation criteria) for any solicitation hiring a consultant for engineering, surveying and architectural professional services where the anticipated fee is over $100,000.00. 2. Cost savings and process improvements a. Increase the purchasing threshold for formal procurement to $100,000.00 b. Allow the use of electronic means in Contracts and Solicitations For further details see attached Council Briefing Memo. Attachment 1, Page 1 of 3 M E M O R A N D U M City of Springfield Date: 11/19/2012 To: Gino Grimaldi COUNCIL From: Bob Duey and Jayne McMahan BRIEFING Subject: Proposed updates to Municipal Code 2.700 through 2.718 MEMORANDUM ISSUE: Following the October 8, 2012 Work Session and the November 5, 2012 Regular Session and First Reading the changes to the Municipal Code 2.700 through 2.712 and added section 2.709 are being recommended as set forth in the attached draft ordinance. The State of Oregon Legislature passed HB3316 which requires the City to update our Municipal Code surrounding how we select certain consultants for engineering, surveying and architectural professional services. The changes also present the Council with choices as to whether to adopt certain cost savings and process improvement by updating the dollar threshold for the formal solicitation process, and include the use of electronic means for solicitations, processing and contract execution. COUNCIL GOALS/ MANDATE: Financially Responsible and Stable Government Services LEGISLATIVE CHANGE With the Oregon State Legislature 2011 Session passage of HB3316 requiring all public agencies to use a Qualification Based Selection (QBS) process for the procurement of engineers, architects, land surveyors, photogrammetrists, and transportation planners our Municipal Code sections 2.700 through 2.718 will need to be updated. The current Municipal Code sections 2.700 through 2.718 provide the City the opportunity to use price as a primary evaluation criteria for the selection of engineers, architects, land surveyors, photogrammetrists, and transportation planners. With the passage of HB3316 “price” can no longer be used as an intial primary criterion in the selection process for those professional services when the cost of those services exceeds $100,000. The City can use other criteria for the selection process such as previous experience in “like projects”, specialized experience, proposed approach and methodology to meet the project requirements, staff experience, firm ownership and employment practices, project management techniques, firm availability to the locale, and firm familiarity with project locale. Only after the City selects the most qualified consultant can the City consider and negotiate “price”. If the City is unable to negotiate a “price” that they feel is fair and reasonable then the City will negotiate with next best qualified consultant. The proposed changes to the Municipal Code sections 2.700 through 2.708 remove element of price as a primary criterion in the above services and new section 2.709 has been created to comply with the HB3316. See Attachment 1 for the proposed code and the new section 2.709. STAFF INITIATED PROCESS IMPROVEMENT City staff recommended Council review the purchasing thresholds for the formal procurement process to implement process improvement and cost savings. Attachment 1, Page 2 of 3 Increasing Threshhold on Intermediate Purchases The current purchasing process within our Municipal Code follows three primary limits of authority. They are: • Small Informal – up to $4,999.99. The City staff gathers quotes from a minimum of three qualified suppliers via telephone, email or web services. The City documents the quotes and the bid is awarded to the lowest bidder. • Intermediate Bids – $5,000. to $34,999.99. Bids are solicited or gathered in writing and ust 000 to $149,999 with each individual are required for all contracts from $5,000.01 and $34,999.99. Bids for contracts that are less than $35K may be awarded by the City Manager or his or her designee. • Formal Sealed - $35,000 and above. Offers are advertised, and gathered in sealed packets on a specific date and time opened. All bids for contracts $35K and over m be awarded by formal action of the City Council. State statutes allow the Intermediate Bids to range from $5, City then able to determine their own dollar threshold for requiring the change to a Formal Sealed process. Currently Springfield Municipal Code has the City operating on the lower end of the continuum by requiring bids of $35,000 or more to require Council approval. Common Practices The City looks to process improve and to standardize across the organization. That would whereby Springfield and Eugene staff conducting business on . process has many steps and State Statutes to follow that is time ld develop . include leveling processes and policies with Metropolitan Wastewater Management Commission (MWMC) as well. WMC has adopted model rulesM its behalf have a threshold for formal sealed bids that require approval of the Commission on any procurement above $150,000. Springfield staff currently working on the fire merger are looking to standardize policies and procedures with the City of Eugene as well. The City of Eugene’s Municipal Code 2.1430 requires formal bidding for purchases greater than $100,000 enchmarking other municipalities of our size: Bend -purchases greater than $100,000 must be B formally bid, Gresham - purchases greater than $50,000 must be formally bid (Gresham is looking to raise their threshold to $100,000), and Corvallis- purchases of greater than $50,000 must be formally bid. he formal solicitation T consuming for the bidding private sector community, City Staff, and the City Attorney. The formal solicitation process has a lengthy timeline from the time the advertisement of the opportunity is published to when the contract is signed after Council approval. With a shorter process to solicit goods and services, the City would benefit from the cost savings in terms of staff resources, advertising and printing costs. All departments across the City would benefit from the cost savings including CMO. The City would also benefit from the shorter timelines from solicitation to acquisition for the needed goods and services. The private sector would be able to submit bis and proposals with less committement of staff and resources. A streamlined process would continue to be a competitive process. The City wou standardized bidding templates and guidelines for staff to follow to ensure bonafide bids are being solicited. Informality does not dispense with the requirements for documentation and accountability. Further, the process would remain a fair and transparent process as it is today These intermediate procurements would continue to be posted on the City’s website, as well as, sent to those in our supplier database. These measures would thus ensure the continued public confidence in the objectivity, transparency and the procurement of goods and services at the lowest price. Attachment 1, Page 3 of 3 Recommendation ity Staff recommends that Springfield increase the threshold of intermediate procurements 00,000. (The State Statute gives us the authority to raise this threshold to purchasing process follows three primary limits of authority. untability in the g authority for contracts from $50,000 to $100,000 in C from $35,000 to $1 $150,000.) The proposed • Small Informal – up to $5,000. • Intermediate Bids – $5,000 to $99,999.99. To ensure continued acco process contract award and signin would go to the City Manager. Contracts from $5,000 to $49,999.99 would be signed and awarded by Department Directors. This graduated authority will be implemented the purchasing guidelines will provide additional oversight and accountability . • Formal Sealed - $100,000 and above. All bids for contracts $100,000 and over must be awarded by formal action of the City Council. Electronic Contracting The final area of Municipal Code update that staff recommended is around the area of electronic ignatures. In the current business environment the need for an G CTIONS 2.700 THROUGH 2.718., "PUBLIC CONTRACTS" OF THE SPRINGFIELD , 2.703, 2.704, 2.706, 2.708, bidding and signatures. Currently the City has a small paragraph, 2.712 Electronic Publications, in the Municipal Code that addresses the publicizing bids and requests for proposals but it doesn’t address solicitation, ubmittal and electronic ss electronic contracting process has become almost a necessity. In adopting a code that gives staff the ability and flexibility to use electronic solicitation and submission, we would be addressing the needs to expedite contract execution, clip wrap or click through acceptance on electronic applications that require an individual to click “ok” to accept terms and conditions, and appropriate retention of electronically stored documents based on State requirements. The state statute allows us the ability to have a Code that legally recognizes electronic and electronic contracts. Further, the use of electronic process feeds nicely into the Governor’s Green Executive Order 3-03 requiring State agencies to develop policies and practice to make Oregon a more sustainable state, as well as, Oregon Sustainability Act ORS.184.421. This would also result in a cost savings, staff time as staff would no longer have to prepare documents to mail, UPS or Fed Ex, savings on paper and printing, and mailing costs. Lastly, the environment would benefit by reduced greenhouse gases from moving the documents physically in trucks or planes. This electronic process would be used at the discretion of staff and not in all instances. RECOMMENDED ACTION: Adopt the following ordinance: AN ORDINANCE OF THE COUNCIL OF THE CITY OF SPRINGFIELD AMENDIN SE MUNICIPAL CODE AND SPECIFICALLY SECTIONS 2.702 2.712 AND ADDING SECTION 2.709 TO THE SPRINGFIELD MUNICIPAL CODE.