Chapter 2-8: Purchasing Procedures³⁹

2-8-1 Legislative Intent.

The purpose of this chapter is to prescribe purchasing procedures that the city will follow in contracting for constructing capital improvements, purchasing tangible property, obtaining insurance policies, purchased services, and consulting services, and selling obsolete, surplus, or unusable city property. To the extent inconsistent with state law, the council intends that these procedures supersede provisions of state law governing city purchasing procedures.⁴⁰

2-8-2 Definitions.

The following terms as used in this chapter have the following meanings unless the context clearly indicates otherwise:

"Capital improvement" means a fixed public improvement, including, without limitation, streets, alleys, sidewalks, water or wastewater facilities, flood control facilities, traffic control devices, street lighting, parks, public structures, and landscaping.

"Consulting services" means services provided by individuals possessing specialized educational qualifications or practical expertise or professional certification, including, without limitation, architects, engineers, legal counsel, planners, accountants, and actuaries.

"Purchased services" means the purchase of labor, time, and effort, other than consulting services, which does not involve the delivery of tangible property or for which the tangible property component is minimal in relation to the personal services component, as determined by the city manager. This category includes, without limitation, maintenance and repair services and secretarial and clerical services.

"Tangible property" means personal property and materials, including, without limitation, supplies, equipment, parts, printing, and consumable supplies, but not including insurance, real property leases, securities, or water rights.

(Ordinance No. 5884 (1997))

2-8-3 When Formal Competitive Bidding is Required.

(a) The city manager shall call for formal competitive bids on any of the following purchase categories: tangible property, capital improvement contracts, purchased services, consulting services, or insurance policies in an amount of $50,000.00 or more unless:

(1) The contract is awarded to a person who has been awarded a contract by another public agency through a competitive bid process within the last year and the unit prices in the city contract do not exceed the unit prices in the public agency contract;

(2) The contract is for goods to be re-sold by the city at retail; or

(3) The manager determines that it is not practical and advantageous to call for a competitive bid.

(b) The city manager shall call for formal competitive bids or conduct a public auction for the sale of any item of obsolete, surplus or unusable city property with an estimated value of at least $5,000.00 or for the sale of more than one item of such property with an estimated accumulative value in excess of $25,000.00. The property shall be sold to the highest bidder, unless the manager determines that it is not practical and advantageous to do so. The manager may require such bonds or other surety as the manager deems prudent to assure prompt payment. The city council shall be promptly notified by the city manager of any determination to donate or otherwise dispose of any item of city property with an estimated value of at least $5,000.00 or to donate or otherwise dispose of more than one item with an estimated accumulative value in excess of $25,000.00, other than through a formal competitive bid or a public auction. The city council may call this determination up for review within fourteen days of receiving notice.

(Ordinance No. 6038 (1998))

2-8-4 Formal Bid Requirements.

(a) Each formal bid submitted to the city shall meet the following conditions:

(1) Each bid is signed, enclosed in a sealed envelope, and filed as stated in the advertisement for the bid.

(2) No bidder submits more than one bid.

(3) Each bid is accompanied by a check or bid bond equal to five percent of the bid, to be forfeited to the city if a bid is accepted and the bidder fails to sign a contract within fifteen days of acceptance, unless the city manager determines that it is not practical and advantageous to require a bid bond.

(b) The city manager may require that no bid be withdrawn for up to forty-five days after the date and time set for opening of bids, but a bid may be withdrawn up to twenty-four hours prior to expiration of the deadline for submitting bids.

(c) The city manager may waive technical irregularities in the bid requirements in this chapter or in the advertisement for bids, if the manager finds that such waiver does not compromise the integrity of the bidding process.

2-8-5 Formal Bidding Procedure.

(a) The city manager shall publish a notice of call for bids at least once in a newspaper of general circulation in the city containing:

(1) A description of the project or work to be performed or the product or service to be purchased;

(2) The location where copies of plans, specifications, and other documents may be examined;

(3) The time and place where bids will be received and time and place where bids will be opened;

(4) A statement that the city reserves the right to reject any or all bids and to waive any minor informalities or irregularities therein;

(5) Time and budget limitations, if applicable; and

(6) A statement that the proposal is prepared at the submitter's expense and becomes city record and therefore a public record.

(b) Among other conditions in a call for bids, the city manager may require standard brands of tangible property, recycled and environmentally preferable products, and a multiple-year relationship of up to five years with the selected bidder.

(c) Bids not submitted by the required deadline are ineligible for consideration and will not be opened, but the city manager may change the deadline at any time.

(d) Bids shall be opened by the director of finance and record or a representative designated by the director at the time and place provided in the advertisement for bids.

(e) Bidders may inspect the bids after they are opened in accordance with provisions of the Colorado Public Records Act 66. However, if the city manager determines that all bids should be rejected and a re-bid may be necessary, the manager may hold the bid in confidence until the re-bid has been completed.

(f) Confidential data, if identified as such, will be held confidential upon request, if the request is made as part of the bid and if the city attorney determines that the data meet the requirements of the Colorado Public Records Act.⁴¹

(g) The city manager is not required to maintain a bid list. The only formal notice of a call for bids is that published in a newspaper of general circulation in the city as prescribed by subsection (a) of this section.

(h) Nothing in this chapter shall preclude the city manager from issuing a call for bids in stages for the purpose of pre-qualifying bidders for projects, tangible property, or services required by the city. The city manager may pre-qualify prospective contractors or vendors and maintain a list for particular types of construction, tangible property, or services.

(Ordinance No. 6038 (1998))

2-8-6 Informal Procedure for Bids or Quotes.

(a) The manager may require an informal competitive bidding or quote procedure for any purchase or contract for which a formal competitive bid is not required under this chapter.

(b) An informal bid or quote requires requests to at least three vendors for prices.

(d) Although usually written, informal bids or quotes may be received orally.

(e) Bid bonds are usually not required for informal bids or quotes.

(Ordinance No. 6038 (1998))

2-8-7 Selection of Bids for Capital Improvement Contracts and Tangible Project Purchases.

The following criteria and procedures shall apply to capital improvement contracts and tangible property purchases:

(a) The city manager may reject any and all bids but otherwise shall accept the lowest bid satisfying the minimum bid requirements and the responsibility criteria prescribed by subsection (c) of this section. For purposes of this chapter, the definition of "lowest bid" will include consideration of initial cost and, when applicable, life-cycle cost, including, without limitation, maintenance cost, over the normal lifetime of the product and energy-efficiency in consumption of non-renewable fuels.

(b) The city manager shall determine if a bidder satisfies the minimum bid requirements and the responsibility criteria prescribed by subsection (c) of this section. If the manager determines that the lowest bidder does not meet the minimum bid requirements and responsibility criteria, the manager may reject the bid.

(c) In determining whether to accept a bid, the city manager shall consider the following responsibility criteria: the bidder's integrity, financial responsibility, skill, relevant technical expertise, ability to complete the contract promptly and satisfactorily, whether the bidder maintains a permanent place of business, whether the bidder has adequate plant, equipment, and support services to perform the contract, whether the bidder has previously performed similar work satisfactorily, whether the bidder is likely to be engaged in work that may impair the ability to finance the work covered by the bid or provide equipment for its proper execution, whether the bidder proposes a reasonable approach to achieve the objectives sought, and whether there have been or are any claims raising a substantial question about the bidder's ability to perform the contract.

(d) The city manager shall encourage the use and procurement of recycled and environmentally preferable products.

2-8-8 Selection of Bids for Consultants, Purchased Services and Insurance.

In determining whether to accept a proposal for consultants' services, purchased services or insurance, the city manager shall determine, based on an evaluation of all of the proposals, which bidder best meets the needs of the city, considering whether each bidder:

(a) Possesses adequate technical and financial resources to perform the project or services or the ability to obtain the resources required for performance;

(b) Possesses necessary experience, organization, and technical skill in the relevant fields or the ability to obtain them, including, without limitation, arrangements with subcontractors;

(d) Has a satisfactory record of performance in developing and implementing similar projects or providing similar services in other jurisdictions; and

(e) Will perform the project or services at a reasonable cost, compared with the level of effort to be expended.

2-8-9 Contract Requirements.

(a) The city manager shall execute all contracts for and on behalf of the city.

(b) All contracts shall be approved by the city attorney before they are executed by the city manager, unless the attorney determines that it is not practical and advantageous to do so.

(c) The city manager shall require a performance bond and a labor and material bond or equal security on all capital improvement contracts over $50,000.00 and may require such bonds or security on capital improvement contracts under $50,000.00.

(d) The last payment on a capital improvement contract where the total contract amount is $50,000.00 or more will not be made until at least ten days after a notice of intention to pay is published at least twice in a newspaper of general circulation in the city and after the city has received a release of statements of claim or liens. Claims against the contract payment shall be filed as prescribed by state law.⁴²

(e) The contract shall include provisions for retainage of contract sums as prescribed by state law,⁴³ and may include provisions for retainage in contracts not covered by state law.

(f) The city may, by contract, require the contractor to waive, release, or extinguish its rights to recover costs or damages, or obtain an equitable adjustment, for delays in performing such contract, if such delay is caused, in whole or in part, by acts or omissions of the city or its agents, if the contract provides that an extension of time for completion of the work is the contractor's remedy for such delay. Such a clause is valid and enforceable, any provision of state law to the contrary notwithstanding.⁴⁴

(g) The city may, by contract, require the contractor to indemnify and hold harmless the city from the city's own precedent, concurrent, or subsequent negligence affecting a third party, so long as the injury or damage alleged by such third party also arose from a negligent act or omission of the contractor while working under the contract, or from a breach of the contract by the contractor. Such a clause is valid and enforceable, any provision of state law to the contrary notwithstanding.⁴⁵

(Ordinance Nos. 5846 (1996); 6038 (1998))

2-8-10 Debarment or Suspension.

The city manager is authorized to debar or suspend a vendor or contractor for just cause. No vendor or contractor shall be debarred or suspended until an opinion regarding the same has been obtained from the city attorney and until procedures recommended by the city attorney have been followed. The period of debarment shall be determined by the city manager on a case-by-case basis. Reasons for debarment or suspension include, without limitation, the following:

(a) Commission of fraud or a criminal offense as an incident to obtaining or attempting to obtain a public or private contract or subcontract or in the performance of such a contract or subcontract;

(b) Conviction or indictment under a state or federal statute of embezzlement, theft, forgery, bribery, falsification or destruction of records, or receiving stolen property;

(d) Failure or default without good cause to perform in accordance with the terms of any contract or unsatisfactory performance of any contract; or

(e) Debarment, disqualification or suspension by another government entity for any reason.

2-8-11 Prohibition of the Purchase of Tangible Property and Services From Persons That Conduct Business in Burma Except in Certain Circumstances.

Repealed.

(Ordinance Nos. 5855 (1996); 7254 (2002))

2-8-12 Recycled and Environmentally Preferable Products.

The city manager shall adopt and may amend by rule an affirmative procurement policy for the use by city departments of recycled and environmentally preferable products.

(Ordinance No. 5855 (1996))

2-8-13 City Manager May Adopt Rules.

The city manager may adopt rules to interpret and enforce this chapter.

(Ordinance No. 5855 (1996))

³⁹ Adopted by Ordinance No. 5723. Derived from Resolution No. 72 and Ordinance Nos. 3550, 3569, 3578, 3659, 3671, 4732, 4879, 5175, 5249.

⁴⁰ 24-91-103 and 38-26-107, C.R.S.

⁴¹ 24-72-203, C.R.S.

⁴² 38-26-107, C.R.S.

⁴³ 24-91-101 through 24-91-110, C.R.S.

⁴⁴ This subsection supersedes 24-91-103.5, C.R.S., and 24-91-101(2), C.R.S., to the extent it may have any application.

⁴⁵ This subsection supersedes 13-50.5-102(8), C.R.S.

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Chapter 2-8: Purchasing Procedures³⁹

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Chapter 2-8: Purchasing Procedures39

Chapter 2-8: Purchasing Procedures³⁹