HomeMy WebLinkAbout455_Amend Part 7 CH 1 Section 7-107_Competitive Bidding Requirement93-019873 5481 1701
CITY OF OWASSO, OKLAHOMA
ORDINANCE NUMBER 455
AN ORDINANCE RELATING TO PART VII -
FINANCE AND TAXATION, CHAPTER ONE -
FINANCE AND BUDGET ADMINISTRATION,
SECTION 7-107 - WHEN COMPETITIVE
BIDDING IS NOT REQUIRED, AMENDING
SECTION 7-1070 PROVIDING FOR
ADDITIONAL EXCEPTION FROM COMPETITIVE
BIDDING REQUIREMENT, DECLARING AN
EFFECTIVE DATE
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF OWASSO,
OKLAHOMA, THAT:
Section One: Part VII - Finance and Taxation, Chapter One - Finance and Budget
Administration, Subsection 7- 107(6) when Competitive Bidding Is Not Required, is hereby
amended to provide as follows, to -wit:
(6.) Supplies, materials, equipment or contractual
services when purchased at a price not exceeding a price
set therefore by the State purchasing agency or any
other state agency hereafter authorized to regulate
prices for things purchased by the State, or any county
purchasing agency or city purchasing agency wherein such
county or city has a population equal to or in excess of
50,000 persons, and,
Section Two: That this ordinance shall, upon passage, become effective thirty days from
the date of first publication as provided by State law.
PASSED AND APPROVED THIS 5th DAY OF JANUARY, 1993.
Patricia K. Marlar, Mayor
ATTEST: Jane Buchanan, City Clerk
Ronald D. Cates, City Attorney
STATE OF OKLAHOMA, TULSA COUNTY, ss:
Bill R. Retherford, of lawful age, being duly sworn
and authorized, says that he is the publisher of the
OWASSO REPORTER
a weekly
newspaper printed in the City of OWASSO Published in the Owasso Reporter,
Owasso, Tulsa County, Okla-
homa, January 14, 1993.
Tulsa County, Oklahoma, a newspaper qualified to CITY OF OWASSO, OKLAHOMA
publish legal notices, advertisements and publications as ORDINANCE NUMBER 455
AN INANCE RELATING AXTO A. VII-ORDFINANCE AND T
provided in Section 106 of Title 25, Oklahoma ART
a Statutes 1971 TION, CHAPTER ONE•FINANCE
and 1983 as amended, and thereafter, and complies with SECTION 7-107 - WHEN COM AND BUDGET ADMINISTRATION '
PGTITIVE BIDDING IS NOT
REQUIRED, 6) PROVIDING DING FOR SEC.
all other requirements of the ON 7-10 7-(
e laws of Oklahoma with ADDITIONAL EXCEPTION FROM
COMPETITIVE BIDDING
reference to legal publications. REQUIREMENT. DECLARING AN
EFFECTIVE DATE
PASSED AND APPOVED
That said notice, a true copy of which is attached THIS 5th DAY OF JANUARY, 1993.
hereto, was published in the regular edition of said CRY Of Owasso, Oklahoma
BY: Patricia K. Marlar, Mayor
newspaper during the period and time of publication and ATTEST.
not in a supplement, on the following dates: Jane Buchanan, CRY Clerk
JANUARY 1-4, 93 APPROVED AS TO FORM:
/s/ Ronald D. Cates
Ronald D. Cates, City Attorney
Subscribed and sworn to before me this 15th
day of Januaru 1993.
Notary Public
My Commission expires:
PUBLISHER'S FEE $10.05
MEMORANDUM
TO: HONORABLE MAYOR AND CITY COUNCIL
CITY OF OWASSO
FROM: RODNEY J. RAY
SUBJECT: REQUEST FOR APPROVAL OF ORDINANCE #455, AMENDING THE
CITY'S COMPETITIVE BIDDING REQUIREMENTS
DATE: DECEMBER 28, 1992
BACKGROUND:
Part 7, Section 7 -107 of the Owasso Code of Ordinances outlines those purchases allowed
without giving an opportunity for competitive bidding (Page 7 -4 of the Code). That list contains
seven purchasing methods that are exempt from such bidding requirements. Item number 6
excludes purchases made at a price not exceeding a price set by the state purchasing agent. That
has been interpreted to mean that the City can purchase from the State bid list without
duplicating the bidding process. However, there have been several instances recently wherein
the opportunity to utilize the bid prices of other cities or counties could have saved the City
money and time. Unfortunately, the code does not allow the City to use those bid lists.
Ordinance #455, if approved, would allow the City to make purchases from bid lists maintained
not only by the State, but also by any city or county whose population exceeded 50,000. Such
language would provide Owasso with the purchasing power of larger entities and give the
Council another option to consider when reviewing requested purchases. Please note that while
the current exemption of State contract prices includes an allowance for State negotiated prices
the new language only allows for the use of prices determined and awarded based on a
competitive bidding process.
This ordinance has been reviewed by Ms. Bishop and was drafted by Mr. Cates. The staff
believes such a change may provide long -term cost efficiencies.
ORDINANCE #455
DECEMBER 28, 1992
PAGE TWO
RECOMMENDATION:
The staff recommends Council approval of Ordinance #455.
ATTACHMENTS:
1. Proposed Ordinance #455
2. Section 7 -107, Owasso Code of Ordinances
3. Correspondence from Mr. Cates dated November 20, 1992
Finance and Taxation
Sec. 7 -105 Sec. 7 -107
SECTION 7 -105 WHEN PRIOR APPROVAL BY THE COUNCIL IS REQUIRED.
Every contract for, or purchase of, supplies, materials, equipment or contractual
services for more than One Thousand Dollars ($1,000.00) shall require the prior approval
of the city council; provided, however, the foregoing provision shall not be applicable to
payments for medical services and supplies arising from claims against the Workers
Compensation Self Insurance Fund. (Prior Code, Sec. 7 -31; Ord. No. 435, 8/6/91)
SECTION 7 -106 COMPETITIVE BIDDING.
Before any purchase of, or contract for, supplies, materials, equipment or
contractual services are made, as otherwise provided below, including lease contracts
with options to purchase, the city purchasing authority shall give written notice for
sealed bids to at least three (3) persons, firms or corporations dealing in and able to
supply the same, a request for quotation, or invitation to bid, and specifications, to give
them opportunity to bid; or publish notice of the proposed purchase in a newspaper of
general circulation within the city. He shall favor a person, firm or corporation in the
city when this can be done without additional cost to the city; but he shall submit
requests for quotation to those outside the city when this may be necessary to secure
bids or to create competitive conditions, or when he thinks that by so doing he can
make a saving for the city; and shall purchase from them when he can make a saving for
the city. All bids shall be sealed and shall be opened in public at a designated time and
place. He may repeatedly reject all bids, and again may submit to the some or other
persons, firms or corporations the request for quotation, or invitation to bid, or again
publish notice of the proposed purchase. He may purchase only from the bidder whose
bid is most advantageous to the city, considering price, quality, date of delivery and so
on, and in case of a tie, may purchase from one of those tying, or may divide the
purchase among those tying, always accepting the bid or bids most advantageous to the
city. (Prior Code, Sec. 7 -32)
State Law Reference: Bidding required on public construction or improvement
contracts of $7,500 or more, 61 O.S. Section 103.
SECTION 7 -107
WHEN COMPETITIVE BIDDING IS NOT REQUIRED.
The following may be purchased without giving an opportunity for competitive
bidding:
I. Supplies, materials, equipment or contractual services whose cost does
not exceed Two Thousand Dollars ($2,000.00) in a single transaction;
2. Supplies, materials, equipment or contractual services which can be
furnished only by a single dealer, or which have a uniform price wherever bought;
3. 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;
4. Equipment to replace existing equipment which has become inoperable
when the council declares the purchase an emergency;
Page 7-4 (1991 Supplement)
FINANCE AND TAXATION
Sec. 7-107 Sec. 7-110
5. Contractual services, including but not limited to gas, electricity, tele-
phone service, purchased from a public utility at a price or rate determined by the
State Corporation Commission or other government authority;
6. Supplies, materials, equipment or contractual service when purchased at a
price not exceeding a price set therefor by the state purchasing agency or any other
state agency hereafter authorized to regulate prices for things purchased by the state,
whether such price is determined by a contract negotiated with a vendor or otherwise;
and
7. Contractual services of a professional nature, such as engineering, archi-
tectural and medical services.
(Prior Code, Sec. 7 -33)
SECTION 7 -108 SALES, COUNCIL
No surplus or obsolete supplies, materials or equipment of a value of more than
Five Hundred Dollars ($500.00) may be sold 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 below, he shall advertise them for
sale in a newspaper of general circulation in the city or give notice in such other
manner as he deems necessary adequately to reach prospective buyers to give them
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. The city manager may
repeatedly reject all bids and advertise or give notice again. He shall sell such supplies,
materials or equipment to the highest responsible bidder for cash. In case of a tie, he
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. (Prior Code,
Sec. 7 -34)
SECTION 7 -109 WHEN COMPETITIVE BIDDING IS NOT REQUIRED.
The city manager may sell the following without giving an opportunity for
competitive bidding:
I. Surplus or obsolete supplies, materials or equipment whose total value
does not exceed One Thousand Five Hundred Dollars ($1,500.00) in a single transaction;
and
2. Supplies, materials or equipment when sold at a price at least as great as
that paid by the city for the same.
(Prior Code, Sec. 7 -35)
SECTION 7-110
BONDS REQUIRED ON PUBLIC
IMPROVEMENTS; CONTRACTS.
A. Anyone, hereinafter referred to as "principal ", constructing improvements
on public property within the city, or within jurisidiction of the city, shall furnish a
three (3) year maintenance bond in the amount of one hundred percent (100%) of the
cost of the work.
Page 7 -5
RONALD D. CATES
ATTORNEY AT LAW
SUITE 6BO, PARKCENTRE
525 SOUTH MAIN
TULSA, OKLAHOMA 74103
9181582-7447
November 20, 1992
Mr. Rodney J. Ray
City Manager
City of Owasso
207 South Cedar
Owasso, Oklahoma 74055
FAX: 9181582.0166
In Re: Ordinance relating to Part Seven - Finance and
Taxation, Chapter One - Finance and Budget
Administration Section 7 -107
Dear Mr. Ray:
Enclosed please find the proposed or anc on the above
referred to matter. If you have any quest, s or omments, please
do not hesitate to contact this office
Sincely
Ronald D. Cates