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.