Item Coversheet
City of Independence
AGENDA ITEM COVER SHEET
BILL NO. 17-070Ord.No:          18769

Agenda Title:

17-070 - 2R. An ordinance amending Chapter 8 Article 6 “Purchases and Sales” Section 2, Section 3, Section 4, and Section 7; and Chapter 20 Article 17 "Bids on Public Works Projects."
Recommendations:

Finance Department staff recommends approval.
Executive Summary:

This ordinance will update Chapter 8 of the City Code Article 6 "Purchases and Sales," and Chapter 20 of the City Code Article 17 "Bids on Public Works Projects."
Background:

The City Charter Section 3.35 authorizes the procurement manager (agent) to contract for purchase under such regulations and with such exceptions as the Council may provide. The last significant modifications to City Code Chapter 8 Article 6 “Purchases and Sales” were done in 2010. The major revisions proposed to Chapter 8 include:

 

Section 8.06.003 Paragraph A2 will set the Informal Bid limit at $50,000, formerly $25,000.  Competitive bidding will still be required as stated in the current code.

 

Section 8.06.003 Paragraph D will be removed. The reverse auction method of procurement is no longer used by the City.

 

Section 8.06.003 Paragraph E3a (former sequencing was F but will change with removal of Paragraph D), the preference given for contracts involving labor or public contract work will be lowered to $300,000 from $500,000.

 

Section 8.06.003 Paragraph F (formerly paragraph G) will lower the threshold from $500,000 to $300,000 for contractor qualifications for construction projects, to match the change in Section 8.06.003 Paragraph E3a.

 

Section 8.06.004 Paragraph 1 was last modified January 1996, setting the competitive bidding threshold at $1,000. The Purchasing Division performed a study in 2017, comparing the competitive bidding thresholds of five government agencies in Missouri and five government agencies in Kansas to determine a current average threshold that could be used at the City of Independence. Staff recommends the competitive bidding threshold be increased to $5,000, based on this study (attached).  Making the change will reduce procurement lead time for lower dollar procurements and increase efficiency and the level of customer service in the Purchasing Division.

 

Section 8.06.004 Paragraph 2 redefines the terms “sole source” and “single source”.

 

Section 8.06.004 Paragraph 4 will be removed. Professional services will require competitive bidding.

 

Section 8.06.004 Paragraph 4 (formerly Paragraph 5) will require purchases made through a cooperative contract to be reported to Council if they exceed $50,000.

 

Revisions to Chapter 20 Article 17 of the City Code, “Bids on Public Works Projects” are also proposed to conform more closely to best practices in public procurement. The major revisions include:

 

Section 20.17.001 would require advertising public works Invitation to Bid projects on the City’s website, submission of the Invitation to Bid to a public works publication house in the metro area, email notification of public works projects to all known contractors interested in projects of this type, and adherence to all superseding federal, state, and local laws, ordinance, and other requirements advertising and notifications, where applicable.

 

Section 20.17.003 (formerly Section 20.17.005) would place the processing of public works bid projects in the Procurement Division.


Department:          FinanceContact Person:          Brian Watson


REVIEWERS:
DepartmentAction
City Clerk DepartmentApproved

Council Action:          Council Action:          Accepted

ATTACHMENTS:
Description
Ordinance
Bid Threshold Study
Procurement Policy Presentation