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HomeMy WebLinkAbout712_Amend Part 7 Finance and Taxation_Spending_Bidding LimitsTulsa County Clerk - EARLENE WILSON Doc# 02116676 Pgs 2 BAP 6825/1215 -1216 Receipt # 607869 09/17/02 11:00:52 Fee 15.00 607869 CITY OF OWASSO, OKLAHOMA ORDINANCE NUMBER 712 AN ORDINANCE RELATING TO PART 7, FINANCE AND TAXATION, SECTION 7-105, WHEN PRIOR APPROVAL BY THE COUNCIL IS REQUIRED AND SECTION 7-107, WHEN COMPETITIVE BIDDING IS NOT REQUIRED, OF THE CODE OF ORDINANCES OF THE CITY OF OWASSO, OKLAHOMA, AMENDING SAME BY INCREASING THE RESPECTIVE LIMITS TO THE AMOUNT OF TWENTY-FIVE THOUSAND DOLLARS ($25,000), AND DECLARING AN EFFECTIVE DATE. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF OWASSO, OKLAHOMA, TO-WIT: SECTION 1: That Part 7 Finance and Taxation, Section 7 -105, When Prior Approval by the Council is Required and Section 7 -107, When Competitive Bidding is Not Required, of the Code of Ordinances of the City of Owasso, Oklahoma, is hereby amended in the following respects, to -wit: SECTION 7 -105 Every contract for, or purchase of, supplies, materials, equipment or contractual services for more than Five Thousand Dell fs «c nnn nnn Twenty -Five Thousand Dollars ($25,000.00) 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. The following may be purchased without giving an opportunity for competitive bidding. 1. Supplies, materials, equipment or contractual services whose cost does not exceed Five Thousand Dollars ($5,000.00), Twenty -Five Thousand Dollars ($25,000.00) 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; 5. Contractual services, including but not limited to gas, electricity, telephone 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 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 7. Contractual services of a professional nature, such as engineering, architectural and medical services. SECTION 2m This Ordinance shall become effective thirty (30) days from the date of first publication as provided by state law. PASSEL) AND APPROVED this 18th day of June, 2002. CITY OF OWASSO, OKLAHOMA ST: Randall C 13rogdon, Mayor , City Clerk D Cates, City Attorney APPROVED AS TO FORM: /s/ Ronald D. Cates Ronald D. Cales, City Attorney ATTEST: /s/ Marcia Boutwell Marcia Boutwell, City Clerk CITY OF OWASSO, OKLAHOMA By: /s/ Randall C. Brogdon Randall C. Brogdon, Mayor Affidavit Of Publication OWASSO REPORTER 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 published in the City of Owasso, Tulsa County, Oklahoma, a news- paper qualified to publish legal notices, advertise- ments and publications as provided in Section 106 of Title 25, Oklahoma Statutes 1971 and 1983 as amended, and thereafter, and complies with an other requirements of the laws of Oklahoma with reference to legal publications_ That said notice, a true copy of which is attached hereto, was published in the regular edition of said newspaper during the period and time of publication and not in a supplement, on the following dates: 2 Subscribed and sworn to before me this - 28th My Commission expires: PUBLISHER'S FEE $ 117.15 AN ORDINANCE RELAT- ING TO PART 7, FINANCE AND TAXA- TION, SECTION 7-105, WHEN PRIOR APPROVAL BY THE COUNCIL IS REQUIRED AND SECTION 7-107, WHEN COMPETITIVE BIDDING IS NOT REQUIRED, OF THE CODE OR ORDINANCES OF THE CITY OF OWAS- so, OKLAHOMA, AMENDING SAME BY INCREASING THE RESPECTIVE LIMITS TO THE AMOUNT OF TWENTY-FIVE THOU- SAND DOLLARS ($25,000), AND DECLAR- ING AD EFFECTIVE DATE. BE IT ORDAINED 8Y THE CITY COUNCIL OF THE CITY OF OWASSO, OKLAHOMA, TO-WIT: SECTION 1: That Part 7 Finance and Taxation, Section 7-105, When Prior Approval by the Council is Required and Section 7-107, When Cornpeti- tive Bidding is Not Required, of the Code of Ordinances of the City of Owasso, Oklahorna, is hereby amended in the follow- ing respects, to-wit: SECTION 7-105 WHEN PRIOR APPROVAL BY THE COUNCIL IS REOLJIRED Every contract for, or purchase of, supplies, rnaterials, equip- ment or contractual services for more than Twenty-Five Thou- sand Dollars ($25,000.00) 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 Seif Insurance Fund. SECTION 7-107 WHEN COM- PETITIVE BIDDING IS NOT REQUIRED The following may be pur- chased without giving an oppor- tunity tor cornpetitive bidding. 1 Supplies, rnaterials, equip- ment or contractual services whose cost does not exceed Twenty-Five Thousand Dollars ($25,000.00) in a single trans- action; 2. Supplies, materials, equip- ment or contractual services which can be furnished only by a single dealer, or which have a unitorm price whenever bought; 3. Supplies, materials, equip- ment or contractual services purchased trom another units of government at a price deemed below that obtainable from pri- vate dealers, including war sur- plus; 4. Equipment to replace exist- ing equiprnent which has become inoperable when the council declare the purchase an emergency; 5. Contractual services, includ- ing but not limited to gas, elec- tricity, telephone service, pur- chased from a public utility at a price or rate determined by the State Corporation Commission or other government authority; 6. Supplies, materials, equip- ment or contractual services when purchased at a price not exceeding a price set therefore by the State purchasing agency or any other state agency here- after authorized to regulate prices tor things purchased by the State, or any county pur- chasing agency or city purchas- ing agency wherein such coun- ty or city has a population equal to or in excess of 50,000 per- son; and 7. Contractual services of a professional nature, such as engineering, architectural and medical services. SECTION 2: This Ordinance shall become eftective thirty (30) days from the date of first publication as provided by state law. PASSED AND APPROVED this 18th day of June, 2002. CITY OF OWASSO, OKLAHOMA ORDINANCE NUMBER 712 Published in the OwassD Reporter Owasso, Tulsa County, Oklahoma, June 27, 2002. MEMORANDUM TO: THE HONORABLE MAYOR AND COUNCIL CITY OF OWASSO FROM: TIMOTHY D. ROONEY ASSISTANT CITY MANAGER SUBJECT: AMENDMENT TO THE OWASSO CODE OF ORDINANCES INCREASING THE SPENDING LIMIT OF THE CITY MANAGER; AND INCREASING THE THRESHOLD FOR BIDDING DATE: June 13, 2002 BACKGROUND: At the direction of the City Council, staff has drafted the attached Ordinance in order to amend both the spending limit of the City Manager and to increase the threshold required for competitive bidding as contained within the City of Owasso Code of Ordinances. Current language contained within the City of Owasso Code of Ordnances limits the City Manager's spending level without obtaining prior approval from the City Council at $5,000. This is also the level at which the City of Owasso must go through the process of competitive bidding. Amendments to Section 7 -105 and Section 7 -107 changing those limits to $25,000 respectively are a benefit to the operation of the City of Owasso for various reasons, the most important being that of efficiency. Several times over the last year items were required to be brought before the City Council in order to ratify actions taken by the City Manager in instances where the spending limit was exceeded. In every instance, the exceedance was the result of an emergency purchase that was required to correct a problem. The Santa Fe lift station failure in January is a good example of just this type of situation. Removal of the $5,000 spending limit and competitive bidding requirement would allow the City to possess greater leverage with vendors in obtaining a fair price to deliver a service, in this case a repair, a leverage that does not exist when any corrective action in excess of $5,000 requires the approval of the City Council at the next regularly scheduled meeting. Additionally, in the event of a major weather related emergency or any disaster (tornado damage, flood damage, or aviation mishap), an increase in the spending limit of the City Manager would allow for swift, efficient management of city resources and obtaining those resources that we do not have without the City Manager being bogged down attempting to have an emergency meeting of the City Council. Finally, and perhaps most importantly, changing the limits and threshold is just good business. The City of Owasso has presented a $42,000,000 budget for FY 2002 -03 and an amendment would not only be more efficient in the sense that city business would not have to be stopped in Code of Ordinances Amendment - Spending and Bidding Limits Page 2 of 2 order to wait on a Council decision regarding the expenditure, but it also permits staff to take advantage of any marketplace price break that may be offered. Staff views this item as another step in a effort to implement a more entrepreneurial philosophy regarding the day to day business of the City. COMMENTS: While these are three of the more proactive reasons for increasing the spending limit and competitive bidding requirements, staff would not be forthright if we did not cite a possible downside to this action. Obviously, the City Manager assumes a greater risk in the decision - making process regarding the expenditure of public funds. However, such risk is in keeping with this administration's philosophy of accountability and responsibility in the management of public resources. Therefore, the basis of this proposal reflects more of the maturity of our organization rather than a risk. It is also important to note that current purchasing policies relating to large items will not change. The intent to purchase large equipment or contract items in excess of $5,000 will continue to be telegraphed to the City Council and the public in the City Manager's Report prior to the actual purchase. This would afford the opportunity to obtain comment from both before any actual purchase is made and allow for appropriate intervention when needed. PROPOSAL: Ordinance No. 712 is attached for your information and review, and if adopted, would increase the spending limit of the City Manager from $5,000 to $25,000 and also increase from $5,000 to $25,000 the level at which competitive bidding is required. RECOMMENDATION: Staff recommends Council approval of Ordinance No. 712 ATTACHMENTS: Sections 7 -105 and 7 -107 of the City of Owasso Code of Ordinances CITY OF OWASSO, OKLAHOMA ORDINANCE NUMBER 712 AN ORDINANCE RELATING TO PART 7, FINANCE AND TAXATION, SECTION 7 -105, WHEN PRIOR APPROVAL BY THE COUNCIL IS REQUIRED AND SECTION 7 -107, WHEN COMPETITIVE BIDDING IS NOT REQUIRED, OF THE CODE OF ORDINANCES OF THE CITY OF OWASSO, OKLAHOMA, AMENDING SAME BY INCREASING THE RESPECTIVE LIMITS TO THE AMOUNT OF TWENTY -FIVE THOUSAND DOLLARS ($25,000), AND DECLARING AN EFFECTIVE DATE. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF OWASSO, OKLAHOMA, TO -WIT: SECTION l: That Part 7 Finance and Taxation, Section 7 -105, When Prior Approval by the Council is Required and Section 7 -107, When Competitive Bidding is Not Required, of the Code of Ordinances of the City of Owasso, Oklahoma, is hereby amended in the following respects, to -wit: 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 , ft Twenty -Five Thousand Dollars ($25,000.00) 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. SECTION 7 -107 WHEN COMPETITIVE BIDDING IS NOT REQUIRED The following may be purchased without giving an opportunity for competitive bidding. 1. Supplies, materials, equipment or contractual services whose cost does not exceed Five Thousand Dellar-s , Twenty -Five Thousand Dollars ($25,000.00) 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; 5. Contractual services, including but not limited to gas, electricity, telephone service, purchased from a public utility at a price or rate determined by the State Corporation Commission or other govermnent authority; 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 7. Contractual services of a professional nature, such as engineering, architectural and medical services. SECTION 2: This Ordinance shall become effective thirty (30) days from the date of first publication as provided by state law. PASSED AND APPROVED this 18" day of June, 2002. ATTEST: Marcia Boutwell, City Clerk APPROVED AS TO FORM: Ronald D Cates, City Attorney F) CITY OF OWASSO, OKLAHOMA Randall C Brogdon, Mayor