CC Ordinance 2320 - City Manager Thresholds Pass-Through Professional Service Agreements ORDINANCE NO. 2320
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF CAMPBELL AMENDING
CHAPTER 3.20 OF THE CAMPBELL MUNICIPAL CODE REGARDING CITY
MANAGER AWARD THRESHOLDS AND FORMAL SOLICITATION REQUIREMENTS,
ADDITION OF SECTION 3.20.120 (PASS-THROUGH PROFESSIONAL SERVICE
AGREEMENTS)TO CHAPTER 3.20 AND MODIFYING SECTION 3.20.030 FOR PASS-
THROUGH PROFESSIONAL SERVICE AGREEMENTS
WHEREAS, Campbell Municipal Code Chapter 3.20 establishes the City's procedures
for the purchase, leasing, and disposal of supplies, services, and equipment at the lowest
possible cost, and commensurate with the quality needed; and
WHEREAS, Chapter 3.20 sets forth guidelines for purchasing officer, bidding, purchase
orders, formal contract procedures, open market procedures, purchases from other
agencies, sale of obsolete personal property, alternative bidding procedures, requests for
proposals, and authority to enter and execute contracts; and
WHEREAS, Ordinance 2228 clarified sections of Chapter 3.20 to align with State law,
and identified modest changes to the purchasing dollar limits that required City Council
action to reflect current market conditions; and
WHEREAS, The recommendation as it pertains to the City Manager's contract award
threshold and current formal solicitation requirements made by Baker Tilly in their
Purchasing System Organizational Assessment of the City presented during the June 6,
2023 Council Meeting and research conducted by staff; and
WHEREAS, the City Council desires to adjust the City Manager's contract award
threshold to $100,000 and to modify current formal solicitation requirements and to
provide clarifying language to align the sections impacted; and
WHEREAS, on March 5, 2024, City Council discussed a procurement enhancement that
would improve and standardize the City's procedures, as it relates to the expenditure of
non-City funds for development projects which require the preparation of specialized
technical studies; and
WHEREAS, the City Council desires to add CMC section 3.20.120 — Pass-Through
Professional Service Agreements to state that "Professional Service Agreements for
• services to be provided in association with a development project using non-city funds
procured from an applicant, may be approved and executed by the City Manager or his
designee as referenced in the City's administrative policy"; and
WHEREAS, the City Council desires to modify CMC section 3.20.030 to include that
bidding requirements may be dispensed when the source of funding is procured by non-
city funds from an applicant for a development project and when a Professional Service
Agreement is executed in accordance with section 3.20.120;
NOW THEREFORE, BE IT RESOLVED THAT THE CITY COUNCIL OF THE CITY OF
CAMPBELL DOES HEREBY ORDAIN AS FOLLOWS:
Section 1: Section 3.20.030 of the Campbell Municipal Code is hereby amended to read
as follows with strikethroughs '(ctrikcthroughs) indicating deleted text, and underlining
(underlining) indicating added text:
3.20.030 — Bidding
Except as otherwise authorized or required by this chapter, or under state or federal
law, purchases of supplies, services and equipment shall be by the bidding
procedures specified in Section 3.20.050 of this chapter. The bidding procedures of
Section 3.20.050 may be dispensed with when any of the following circumstances
exist, unless otherwise required by state and federal law:
1) The estimated value of supplies, services or equipment is less than, or equal to,
fifty one hundred thousand dollars, and the procedures set forth in section
3.20.060 are followed;
2) No acceptable bids are received from any responsible bidder, after following the
procedures set forth in Section 3.20.050 of this chapter;
3) An emergency situation creates a threat to the public health, safety or welfare that
necessitates the suspension of the bidding procedures of Section 3.20.050;
4) The city seeks the special services, consultation or advice in financial, economic,
accounting, engineering, legal, administrative or other matters from persons
specially trained, experienced and competent to perform the special services
required;
5) The city has elected to purchase supplies, materials or equipment directly from
the state of California, the county of Santa Clara or any other California county or
municipality pursuant to Section 3.20.070 of this chapter;
6) The city elects to purchase supplies, materials or equipment directly from a
vendor determined to be the lowest responsible bidder as a result of a competitive
bid process conducted by the state of California, the county of Santa Clara or any
other California county or municipality. Such purchases are allowed provided that:
A. The bidding procedures conducted by the agencies identified are
reasonably consistent with Section 3.20.050 of this code, and
B. The vendor agrees to provide the same low bid price to the city as provided
to the awarding agency:
7) The supplies, services or equipment can only be obtained from one vendor, in
which case the City may negotiate directly with that vendor; or
8) The City Council, by a majority vote, determines that it is in the best interest of
the public to dispense with the requirements of Section 3.20.050, in which case
the City Council shall prescribe the appropriate method of purchase.
9) Where the source of funding is procured from an applicant for a land development
project and a Professional Service Agreement is executed in accordance with
section 3.20.120
In the event that subsections (2), (3), or (4) apply, the purchasing officer may proceed
with the purchase in the manner that he or she determines to be in the best interest of
the City.
Section 2: Section 3.20.050 of the Campbell Municipal Code is hereby amended to read
as follows with strikethroughs (strikethrough&) indicating deleted text, and underlining
(underlining) indicating added text:
3.20.050 — Formal contract procedure
Except as otherwise provided in this chapter, purchases and contract for supplies,
services and equipment of estimated fair market value greater than fifty one hundred
thousand dollars shall be written contract with the lowest responsible bidder pursuant
to the procedure prescribed herein as follows:
1) Approval of Specifications. Specifications shall be approved by the CGity
CGouncil, the original of which shall be filed in the office of the city clerk.
2) Notice Inviting Bids. The notice inviting bids shall not require approval of the City
Council for supplies, services, and equipment, when the purchase has been
identified and accounted for in the current fiscal year's adopted budget. In all other
cases, ;the notice inviting bids shall be advertised upon the authority of the CGity
Ceouncil and shall include a general description of the articles to be purchased
or services to be performed, shall state where bid blanks and specifications may
be secured, form and amount of performance bond, if required, and the time and
place for opening bids:
A. Published Notice. Notice inviting bids shall be published one time in a
newspaper of general circulation in the city.
B. Bidder's List. The requesting department shall also solicit sealed bids from
all responsible prospective suppliers whose names are on the bidder's list
or who have requested their names to be added thereto.
3) Bidder's Security. The notice for invitation for bids shall prescribe an amount of
money to accompany the bid proposal, which is required as the bidder's security.
Bidders shall be entitled to return of bid security; provided, that a successful
bidder shall forfeit the bid security upon refusal or failure to execute a contract
within ten days after the award of contract has been mailed, unless the city is
responsible for the delay. The CGity CGouncil may, on refusal or failure of the
successful bidder to execute the contract, award it to the next lowest responsible
bidder. If the CGity CGouncil awards the contract to the next lowest bidder, the
amount of the lowest bidder's security shall be applied by the city to the difference
between the low bid and the second lowest bid, and the surplus, if any, shall be
returned to the lowest bidder.
4) Bid Opening Procedure. Sealed bids shall be submitted to the City Clerk and shall
be identified as bids on the envelope. Bids shall be opened in public at the time
and place stated in the public notice. The opened bids shall be available at all
times during business hours for public inspection from the time they are opened
until the award has been made by the City Council.
5) Tabulation of Bids. The requesting department shall tabulate all bids received and
the City Manager shall recommend to the CGity Ccouncil, which, in his opinion, is
the best and lowest bid
6) Award of Contracts. Contracts shall be awarded by the City Council to the lowest
responsible bidder except as otherwise provided in this chapter.:
7) Rejection of Bids. In its description, the City Council may reject any and all bids
presented. The City Council may then re-advertise the bids or authorize the City
Manager to proceed with the purchase of the materials, services or equipment by
negotiation in the open market subject to final approval of purchase by City
Council.
8) Tie Bids. If two or more bids received are for the same total amount or unit price,
quality or service being equal and if the public interest will not permit the delay of
re-advertising for bids, the City Council may accept the one it chooses, or accept
the lowest bid made by negotiation with the tie bidders at the meeting at which
the award of the bid is to be made.
9) Performance Bonds. The City Council shall have authority to require a
performance bond before entering a contract in such amount as it shall find
reasonably necessary to protect the best interests of the city. If the City Council
requires a performance bond, the form and amount of the bond shall be described
in the notice inviting bids.
Section 3: Section 3.20.090 of the Campbell Municipal Code is hereby amended to read
as follows with strikethroughs (strikethroughs) indicating deleted text, and underlining
(underlining) indicating added text:
3.20.090 — Alternative bidding procedures for public projects — Incorporation
of uniform construction of cost accounting procedures
Pursuant to the uniform construction accounting procedures set forth in Article 2
(commencing with Section 22010) of the California Public Contract Code (the "Act
PCC") public projects, as defined in the Act PCC (Section 22002), or as those
sections may be amended from time to time by the state legislature, shall be
advertised, bid and awarded in accordance with Article 3 (commencing with Section
22030) of the Act PCC. Notwithstanding any contrary provisions of this chapter, and
except as otherwise authorized or required by state or federal law, public projects
with a value equal to, or less than, the informal bid limits stipulated in PCC Sections
22032(b) and-(c) and 22034(fd), as amended from time to time, shall be advertised,
bid and awarded in accordance with Article 3 (commencing with Section 22030) of
the Act, and pursuant to the following procedures:
a) The City shall maintain a list of qualified contractors, identified according to
categories of work. Minimum criteria for development and maintenance of the
contractors list shall be determined by the California Uniform Construction Cost
Accounting Commission.
b) All contractors on the list for the category of work being bid and/or all construction
trade journals specified by the California Uniform Construction Cost Accounting
Commission shall be mailed a notice inviting informal bids unless the product or
service is proprietary.
c) All mailing of notices to contractors and construction trade journals shall be
completed not less than ten calendar days before bids are due.
d) The notice inviting informal bids shall describe the project in general terms, how
to obtain more detailed information about the project, and state the time and place
for submission of bids.
e) The City Council delegates the authority to award informal contracts to the Public
Works Director, City Manager, Building Official, or other appropriate person.
f) Before awarding a public project contract, at least three bids must be received
unless any of the following occurs:
(i) The product or service is proprietary;
(ii) All of the qualified contractors on the list have been solicited, but less than
three bids have been received.
g) Notice inviting informal bids shall be published at least once and publication shall
be completed at least twenty-four hours before the time scheduled for opening of
the bids.
h) If all bids received are in excess of the informal bid limits stipulated in PCC
Section 220342(fb), as amended from time to time, the governing body of the
public agency may, by passage of a resolution by a four-fifths vote, award the
contract to the lowest responsible bidder if it determines the cost estimate of the
public agency was reasonable, subject to the limitations of PCC Section
22034(d).
i) Any and all other procedures required by the Cost Accounting Policies and
Procedures Manual of the California Uniform Public Construction Cost
Accounting Commission, which is incorporated herein by reference.
Section 4: Section 3.20.091 of the Campbell Municipal Code is hereby amended to read
as follows with strikethroughs (strikethroughs) indicating deleted text, and underlining
(underlining) indicating added text:
3.20.091 — Request for proposals (RFP).
Notwithstanding any contrary provision of this chapter, the bidding procedures
specified in Section 3.20.050 may be dispensed with for the purchases of supplies
and services that are technical in nature; provided, that the following conditions are
met:
(1) With City Council approval if the estimated amount or value involved is more
than fifty one hundred thousand dollars; or
(2) Without City Council approval if the estimated amount or value is le.c than
fifty one hundred thousand dollars or less.
(3) Upon a determination by the City Council under subsection (1) or the City
Manager or his or her designee under subsection (2), that the use of
competitive bidding is not practical or advantageous because one or more
of the following conditions exist:
(A) Price is not a primary consideration,
(B) Quality, availability or capability is overriding in relation to price in
procurement of research, development, technical supplies or
services, or
(C) Delivery and installation, post-sale service or maintenance,
reliability, warranties or availability or replacements are overriding in
relation to prices.
(4) RFP. An RFP shall be specific and will include, but not be limited to, type of
services or supplies to be provided, methodology to be used and/or
specifications requested, time frame for completion of the project, form and
amount of performance bond, if required, and the final form which the
project will take. The RFP shall also specifically identify the time and place _
where the proposal shall be delivered.
(5) Receipt of Proposals. If the estimated amount or value involved is more
than fifty one hundred thousand dollars, proposals shall be submitted to the
City Clerk's office for acceptance by the City and then forwarded to the
responsible department.
(6) Discussion with Responsible Offerors and Revisions to Proposals.
Discussions may be conducted with responsible offerors, who submit
proposals that reasonably meet the selection criteria, for the purpose of
clarification to assure full understanding of, and conformance to, the RFP.
Offerors shall be accorded equal treatment with respect to any opportunity
for discussions, and revisions of proposals and such revisions may be
permitted after submissions and prior to award for the purpose of obtaining
best and final offers.
(7) Award of Contract. Contracts over fifty one hundred thousand dollars shall
be awarded by the CGity Ccouncil and made to the responsible offeror
whose proposal is determined to be the most advantageous to the city,
taking into consideration the evaluation factors set forth in the RFP.
(8) Rejection of Proposal. Without limitation to the applicability of any other
provisions of this chapter, the Ccity Ccouncil may reject any and all
proposals if such rejection is deemed in the best interests of the city.
Section 5: Section 3.20.100 of the Campbell Municipal Code is hereby amended to read
as follows with strikethroughs (strikethroughs) indicating deleted text, and underlining
(underlining) indicating added text:
3.20.100 —Authority to Enter and Execute Contracts.
(1) Except as otherwise authorized by this chapter or other applicable provision
of law, contracts involving the expenditure or receipt of fifty more than one
hundred thousand dollars or more shall be approved by the City Council,
and shall be signed on behalf of the City by the Purchasing Officer or Mayor;
(2) Except as otherwise authorized by this chapter or other applicable provision
of law, contracts involving the expenditure or receipt of five thousand dollars
to forty nine thousand ninc hundred ninety nine one hundred thousand
dollars and ninety-nine cents shall be approved and signed on behalf of the
City by the Purchasing Officer; and
(3) Except as otherwise authorized by this chapter or other applicable provision
of law, contracts involving the expenditure or receipt of less than five
thousand dollars may be approved and signed by the department head
charged with overseeing the contract or the Purchasing Officer.
Section 6: Section 3.20.120 is hereby added to Chapter 3.20 of the Campbell Municipal
Code to read:
3.20.120 — Pass-Through Professional Service Agreements
Professional Service Agreements for services to be provided in association with a
land development project using funds procured from an applicant of the
development, may be approved and executed by the City Manager or his designee
as referenced in the City's administrative policy.
PASSED AND ADOPTED this 15th day of October, 2024 by the following roll call vote:
AYES: Councilmembers: Bybee, Furtado, Scozzola, Lopez, Landry
NOES: Councilmembers: None
ABSENT: Councilmembers: None
APPROVED:
(
Susan M. Landry, Mayor
ATTEST:
Andrea Sand ' , C '/ity Clerk