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HomeMy WebLinkAboutCM Purchasing Policy____________________________________________________________________________________ FOR CITY CLERK ONLY Council Meeting: 4/16/2018 Disposition: Passed Ordinance 1957 to Print Agenda Item No: 5.b Meeting Date: April 16, 2018 SAN RAFAEL CITY COUNCIL AGENDA REPORT Department: City Manager’s Office Prepared by: Daniel Soto, Associate Management Analyst City Manager Approval: ________ ______ TOPIC: Purchasing Policy Ordinance SUBJECT: AN ORDINANCE OF THE CITY OF SAN RAFAEL AMENDING CHAPTER 2.55 OF THE SAN RAFAEL MUNICIPAL CODE ENTITLED “PURCHASING POLICY’ AND REPEALING CHAPTER 2.60 ENTITLED “PROFESSIONAL SERVICES AGREEMENTS” TO UPDATE THE CITY OF SAN RAFAEL’S PURCHASING POLICIES AND PROCEDURES RECOMMENDATION Conduct a public hearing regarding a proposed ordinance to amend Chapter 2.55 of the San Rafael Municipal Code entitled “Purchasing Policy” and repeal Chapter 2.60 entitled “Professional Services Agreements” to update the City’s purchasing policies and procedures and pass the ordinance to print. EXECUTIVE SUMMARY The City of San Rafael’s current Purchasing Policy was adopted in 1994 and has not been changed since. Staff recommends updating the Purchasing Policy to reflect best practices and to ensure compliance with federal, state, and applicable laws and regulations. The proposed changes include the following: increasing the City Manager’s award authority to $75,000; permitting the City Manager to delegate his or her authority under the Purchasing Policy, unless expressly prohibited by the ordinance; adding a provision requiring the execution of an administrative policy to provide procedural guidance relating to federal awards and to the execution of the Purchasing Policy; and updating the competit ive bidding procedures. BACKGROUND The City of San Rafael adopted its current Purchasing Policy in 1994, adding provisions relating to the procurement of professional services in 1997. Considering the scope of goods, services, and professional services procured by the City today, as well as the change in procurement and purchasing best practices, staff has determined that the City’s Purchasing Policy is outdated and does not provide adequate procedures for the procurement of supplies, materials, equipment, and services. At the April 3, 2018 Finance Committee meeting, staff presented the following recommendations relating to updating the Purchasing Policy: increase the City Manager’s award authority for goods and services (currently $35,000), as well as for professional services (currently $20,000), to $75,000; permit the City Manager to delegate authority under the Purchasing Policy; and add a provision to the Purchasing Policy to require the City Manager to execute an administrative policy to provide procedural SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 2 guidance relating to federal awards and to the execution of the Purchasing Policy. The Finance Committee reviewed this item at its public meeting on April 3, 2018, and indicated its agreement with these recommendations. ANALYSIS The proposed ordinance amends Chapter 2.55 of the San Rafael Municipal Code entitled "Purchasing Policy" and repeals Chapter 2.60 of the San Rafael Municipal Code entitled "Professional Services Agreements" to update the City’s purchasing policies and procedures. Currently, Chapter 2.55 prescribes the City’s policies and procedures relating to the procurement of goods and services, and Chapter 2.60 prescribes the City’s policies and procedures relating to the procurement of professional services. Collectively, Chapters 2.55 and 2.60 encompass the City’s “Purchasing Policy”. The proposed ordinance would repeal Chapter 2.60 in its entirely and incorporate its contents into Chapter 2.55, adding policies and procedures into Chapter 2.55 relating to the procurement of professional services. Below is a summary of the proposed changes to the existing Purchasing Policy: Increase the City Manager’s award authority to $75,000. The City Manager’s award authority has not changed since 1994 for goods and services, and since 1997 for professional services. Staff recommends aligning the City Manager’s award authority with that of city managers in comparable cities. To determine a benchmark award authority amount, staff surveyed all cities in the San Francisco-Oakland-Fremont, CA Metropolitan Statistical Area for cities with a population of 45,000 and above and computed the average award authority for city managers for those cities: $74,708. An increase in the City Manager’s award authority to $75,000 would align the San Rafael City Manager’s award authority with nearby and comparable Bay Area cities. Additionally, the increase in award authority would save considerable time and staffing resources that are typically used with the City Council award process. It is important to note that the funds used for any particular purchase would need to be appropriated for such use, which is determined during the Fiscal Year Budget process and approved by the City Council. Add a provision to the Purchasing Policy that permits the City Manager to delegate authority. In addition to increasing the City Manager’s award authority, staff recommends adding a provision to the Purchasing Policy that permits the City Manager to delegate his or her authority under the Purchasing Policy, unless expressly prohibited by the policy. By adding this provision to the Purchasing Policy, the City Manager will be able to use his or her administrative discretion to delegate award authority, taking into consideration both the award authority amount and the position of the person to whom he or she delegates the authority. The existing Purchasing Policy provides a delegated award authority of $10,000 for the Director of Administrative Services. Taking into consideration that this position no longer exists, staff recommends removing the delegated award authority for the Director of Administrative Services and using the $10,000 delegated award authority amount as a benchmark to delegate award authority to department directors. Add a provision to the Purchasing Policy that requires an administrative policy relating to the management of Federal awards. In December 2014, the Federal Office of Management and Budget (OMB) issued the Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, commonly referred to as “Uniform Guidance” (2 CFR § 200), to streamline and consolidate government SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 3 requirements for receiving and using Federal awards. The Uniform Guidance aims to reduce the administrative burden on award recipients, as well as guard against the risk of waste and misuse of Federal funds. For all non-Federal entities, such as cities, there is a grace period through June 30, 2018 for implementation of the procurement standards prescribed in the Uniform Guidance. To ensure compliance, staff recommends that the City Manager execute an administrative policy prior to the June 30, 2018 deadline that prescribes the required Federal procurement standards. Add a provision to the Purchasing Policy that requires an administrative policy for guidance relating to the implementation of the Purchasing Policy. At this time, the City does not have a citywide document that provides procedural guidance relating to the Purchasing Policy. Staff recommends adding a provision to the Purchasing Policy that requires the City Manager to prepare and execute an administrative policy that provides procedural guidance relating to the execution of the Purchasing Policy (i.e., “A Guide to Purchasing” or “Purchasing Policy Manual”). The administrative policy, which would not conflict with the Purchasing Policy, will include step-by-step guidance for the procurement of goods and services, professional services, and public works. Some of the covered areas will include the following: delegated award authority; credit card use; procurement of technology; purchase orders; requisitions; sustainable purchasing; and more. Staff recommends convening a working group composed of City staff to assist with the preparation of the administrative policy. Update procedures relating to competitive bidding procedures. The City’s current Purchasing Policy defines three types of competitive bidding procedures: Informal Bids for purchases between $1,000 and $20,000; and Competitive Sealed Bids and Competitive Sealed Proposals for purchases that exceed $20,000. The Informal Bids procedure requires the solicitation of bids from at least three providers, whereas the Competitive Sealed Bids or Competitive Sealed Proposals procedure (commonly referred to as “formal bidding”) requires, among other tasks, an Invitation for Bids, a Notice Inviting Bids, a Bid Opening, and more. Formal bidding procedures are staff-intensive and are typically used for purchases of a high dollar value or for purchases by the Department of Public Works. Both informal and formal bidding procedures require that a contract or purchase be made to the lowest responsive and responsible bidder. Considering that the threshold of $20,000 for competitive bidding procedures has not been changed since the current Purchasing Policy was adopted in 1994, staff recommends increasing that threshold from an amount between $1,000 and $20,000 to an amount between $5,000 and $75,000. The funds used for a purchase using any of the three competitive bidding procedures would need to be appropriated in the City’s budget and approved by the City Council. In addition, staff recommends updating the Competitive Sealed Proposals procedure. Section 2.55.190 of the City’s current Purchasing Policy provides that when the purchasing agent determines that the use of the Competitive Sealed Bids procedure is either not practical or not advantageous to the City, the City Council may authorize the city manager or his or her designee to use the Competitive Sealed Proposals procedure via a Request for Proposals (RFP). This means that City staff must present a request to the City Council to authorize the use of the Competitive Sealed Proposals procedure prior to releasing an RFP. Once the RFP process is completed, City staff must return to the City Council to complete the Competitive Sealed Proposals process to request the award of the contract or purchase. The Competitive Sealed Bids procedure is ordinarily used when there is no substantive difference among the products or services that are being procured so that the only difference among responsive bids is price. Many complex purchases cannot be obtained by conventional bidding based solely on price, which is why staff may choose to use the Competitive Sealed Proposals process using an RFP. The Competitive Sealed Proposals procedure requires that a contract or purchase be made to the SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 4 responsible offeror whose proposal is determined to be the most advantageous to the City, taking into consideration price and the criteria established for evaluation set forth in the request for proposal. Considering that much of the procurement and purchasing processes and procedures are administrative in nature, staff recommends revising the competitive bidding procedures to permit the City Manager or his or her designee to authorize the purchasing agent to use the Competitive Sealed Proposals procedure in lieu of the Competitive Sealed Bids procedure, meaning that staff would not be required to bring a request to release an RFP forward to the City Council. This recommended change would not apply to public works contracts. All the revisions to the existing Purchasing Policy are included in the attached draft Purchasing Policy ordinance (Attachment 1). FISCAL IMPACT There is no fiscal impact associated with this item. OPTIONS The City Council has the following options to consider on this matter: 1. Conduct a public hearing and pass the ordinance to print. 2. Conduct a public hearing and pass the ordinance to print with modifications. 3. Direct staff to return with more information; 4. Take no action. RECOMMENDED ACTION Conduct a public hearing regarding a proposed ordinance to amend Chapter 2.55 of the San Rafael Municipal Code entitled “Purchasing Policy” and repeal Chapter 2.60 entitled “Professional Services Agreements” to update the City’s purchasing policy and procedures, and pass the ordinance to print. ATTACHMENTS 1. Ordinance ORDINANCE NO. 1957 AN ORDINANCE OF THE CITY OF SAN RAFAEL AMENDING CHAPTER 2.55 OF THE SAN RAFAEL MUNICIPAL CODE ENTITLED "PURCHASING POLICY" AND REPEALING CHAPTER 2.60 ENTITLED "PROFESSIONAL SERVICES AGREEMENTS" TO UPDATE THE CITY OF SAN RAFAEL'S PURCHASING POLICIES AND PROCEDURES WHEREAS, in 1994, the San Rafael City Council adopted Ordinance No. 1661, adding Chapter 2.55, Purchasing Policy, to the San Rafael Municipal Code; and WHEREAS, in 1997, the San Rafael Municipal Code adopted Ordinance No. 1707, adding Chapter 2.60, Professional Services Agreements, to the San Rafael Municipal Code; and WHEREAS, collectively, Chapters 2.55 and 2.60 of the San Rafael Municipal Code encompass the City of San Rafael's purchasing policies and procedures; and WHEREAS, the City of San Rafael's purchasing policies and procedures require updates periodically in order to gain compliance with new federal or state legislation; and WHEREAS, the City of San Rafael's purchasing policies and procedures require updates periodically in order to reflect best practices in procurement and purchasing; and WHEREAS, the City Council of the City of San Rafael desires to amend Chapter 2.55 of the San Rafael Municipal Code and repeal Chapter 2.60 of the San Rafael Municipal Code in order to update the City's purchasing policies and procedures in order to ensure compliance with new federal or state legislation and to reflect best practices in procurement and purchasing; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SAN RAFAEL DOES HEREBY ORDAIN AS FOLLOWS: DIVISION 1: Chapter 2.55 of the San Rafael Municipal Code entitled "Purchasing Policy" is hereby amended to read in its entirety as follows: 2.55.010 -Purpose. The purpose of this chapter is to set forth procedures for all purchases of supplies, materials, equipment and services, which procedures shall be in compliance with all Federal, state, and , applicable laws. This chapter shall not apply to the following: public works contracts (see Chapter 11.50); or federal awards except as described in 2.55.030(E). 2.55.020 -Definitions. As used in this chapter, the following terms are defined as follows: A. "Contract" and "agreement" shall mean a written agreement between the City and a contractor, the City and a service provider, and/or the City and a vendor. "Contract" includes, but is not limited to, a purchase order, a contract for services, a contract for maintenance, leasing of property or equipment, an addendum or change order, a letter agreement, a memorandum of understanding, or memorandum of agreement. 1 B. "Department" and "using department" shall mean any of the departments, offices or other organizational units of the city government. c. "Department director" shall mean the executive, leader, or administrator in charge of managing a department or using department. D. "Professional services" shall mean services such as, but not limited to, the services of attorneys, physicians, architects, engineers, surveyors and other consultants or individuals or organizations possessing a high degree of technical skill. E. "Public works project" or "public work" shall mean the same as "public work" in Section 11.50.020(H) of Chapter 11.50. F. "Purchase order" shall mean a standardized form to be utilized in contracts for materials, supplies, labor and equipment. G. "Purchasing agent" shall mean the city manager or his or her designee. H. "Services" shall mean any and all work performed or services rendered by independent contractors, with or without the furnishing of material, excluding contracts for public works projects or professional services. I. "Supplies," "materials" and "equipment" shall mean any and all articles or things which shall be furnished to or used by any department of the City. J. "Surplus property" shall mean waste materials generated in the work process, discarded articles, parts or equipment useful only for reprocessing, and such other things that are no longer of use to any department of the City. 2.55.030 -Powers and duties of the purchasing agent. The duties of the purchasing agent shall include, but not be limited to, the following: A. Purchase or contract for supplies, materials, equipment and services required by any using department, including lease purchase agreements for said property in accordance with purchasing procedures prescribed by this chapter. B. Prepare and recommend to the City Council rules and regulations for governing the purchase of supplies, materials, equipment and services for the City. c. Prepare and recommend revisions and amendments to the purchasing policies and procedures. D. Prepare an administrative policy to provide procedural guidance relating to the execution of this chapter. E. Prepare an administrative policy to provide procedural guidance relating to Federal awards, which shall ensure that Federal awards are being managed in compliance with all Federal regulations and with the terms and conditions of the award. F. Prescribe and maintain such forms as reasonably necessary to the operation of this chapter and its related rules and regulations. G. Delegate his or her authority under this ordinance, except where expressly prohibited. 2.55.040 -Award authority. A. If the amount of any purchase or contract exceeds seventy-five thousand dollars ($75,000.00), bids shall be awarded by the City Council. Purchases or contracts equal to 2 or less than seventy-five thousand dollars ($75,000.00) shall be awarded by the city manager. B. No purchases made by any person, or in any manner other than as described herein, shall be binding upon the City or constitute a lawful charge against any City funds. C. Modifications to contracts or purchase orders which represent no change in the scope of the character of material or services provided in the original contract or purchase order may be approved by the city manager or purchasing agent if the dollar value of the modification is within their award authority. 2.55.050 -Contract requirements. The risk manager or the city attorney shall establish appropriate requirements for insurance and indemnification of the City by the contractor. Prior to approval by the city manager or City Council, all contracts and agreements of which the City is to be a party shall be submitted to the risk manager or his or her designee, together with a certificate of insurance, endorsement and any other required documentation. Each agreement shall be attested to by the city clerk. 2 .60.060 -Contract form. All contracts and agreements shall be in a form approved and reviewed by the city attorney prior to submission to the city manager or City Council for final approval. 2.55.070 -Surplus supplies and equipment. All using departments shall submit to the purchasing agent, at such times and in such forms as he or she shall prescribe, reports showing all supplies, materials and equipment which are no longer used or which have become obsolete or worn out. The purchasing agent shall have authority to sell as surplus such supplies, materials and equipment which cannot be used by any department or which have become unsuitable for city use, or to exchange the same for, or trade in the same on new supplies, materials, and equipment. All sales of said property shall be based, whenever possible, on competitive bids as provided in this chapter. 2.55.080 -Encumbrance of funds. Except in cases of emergency, no purchase order or any contract shall be approved for supplies, materials, equipment or services unless there exists an unencumbered appropriation in the fund account against which said purchase or contract is to be charged. 2.55.090 -Competitive bidding. A. Except as otherwise provided in Section 2.55.100 of this chapter, all purchases of and contracts for supplies, materials, equipment and services shall be based, wherever possible, on competitive bids. B. The purchasing agent shall evaluate each purchase or surplus action and initiate the appropriate method of purchase or disposal which will be most cost effective for the City. C. In advertising or soliciting bids under the provisions of this chapter, the purchasing agent shall identify, solicit, and consider vendors, suppliers, and businesses located within the city. 3 2.55.100 -Competitive bidding-Exceptions. Competitive bidding procedures set forth in this chapter shall not apply to purchases of supplies, materials, equipment, and services in the following circumstances: A. Purchases that do not exceed five thousand dollars ($5,000.00). B. Emergency purchases. Emergency purchases and contracts for supplies, materials, equipment and services may be made free of the bidding requirements of this chapter when determined and declared by the city manager that an emergency exists. C. Supplies, materials , equipment, and services that can only be obtained from a sole source or that are specialty in nature. If limitations on the source of supply, necessary restrictions in specifications, necessary standardization, quality considerations, or other valid reasons for waiving competition appears, then purchases may be made without recourse to the competitive bidding provisions of this chapter. Approval of waiver of competitive bidding shall be given by the same level of authority as set forth in the section for award authority. D. The procurement of professional services. Competitive bidding is not required prior to the City entering into a professional services agreement. However, prior to the City entering into a professional services agreement, the City must select a vendor on the basis of demonstrated competence and on the professional qualifications necessary for the satisfactory performance of the services required. E. Cooperative purchasing programs. Purchases of supplies, material, equipment or services and sales of surplus property made under a cooperative purchasing program, such as by utilizing purchasing agreements maintained by the United States government or any agency or division thereof, the State of California, County of Marin, or other public agencies, are exempt from the competitive bidding requirements of this chapter. To the extent possible, cooperative purchases joined will be competitively awarded, and documentation as to the advantage of the cooperative purchase will be retained. 2.55.110 -Bid procedure. A. If the amount of the expenditure for supplies, materials, equipment or services or if the amount for a sale of personal property determined to be surplus is estimated to exceed seventy-five thousand dollars ($75,000.00), purchase or sale shall be by competitive sealed bids. B. When the purchasing agent determines in writing that the use of competitive sealed bids is either not practical or not advantageous to the City, the city manager may authorize the purchasing agent or his or her designee to contract for or to purchase supplies, materials, equipment or services by use of competitive negotiation. C. If the amount of the expenditure for supplies, materials, equipment or services, or if the amount for a sale of personal property determined to be surplus is equal to or less than seventy-five thousand dollars ($75,000.00), purchase or sale shall be made in accordance with informal bidding procedures pursuant to Section 2.55.260. 2.55.120 -Competitive sealed bids. A. Conditions for Use. All contracts and/or purchases shall be by competitive sealed bidding except as otherwise provided in this chapter. B. Invitations for Bids. An invitation for bids (IFB) or similar document shall be issued and shall include or reference all specifications, contractual terms and conditions applicable to the purchase or contract. 4 C. Notice Inviting Bids. Notices inviting bids shall include a general description of the articles to be purchased or sold, the location where bid blanks and specifications may be secured, and the time and place for opening bids. 1. Published Notice. Notices inviting bids shall be published at least ten (10) days before the date of opening the bids. Notice shall be published at least once in a newspaper of general circulation, printed and published in the county. The purchasing agent may waive the necessity to publish the invitation for bid, if the source of supply is not available in the local area or if sufficient bidders are on file to ensure adequate competition. 2. Bidders' List. The purchasing agent may establish a bidders' list. The purchasing agent shall also solicit sealed bids from responsible prospective suppliers whose names are on the bidders' list, if such bidders' list has been established by the purchasing agent. Suppliers may be disqualified and removed from the bidders' list for a period of up to two (2) years if their performance in dealings with the City has not been satisfactory as determined by the purchasing agent. All suppliers removed from the bidders' list shall receive written notification of the reasons or conditions prompting disqualification. Nothing in this subsection requires the purchasing agent to establish or maintain a bidders' list. 2.55.130 -Bidders' security. When deemed necessary by the purchasing agent, bidders' security may be prescribed in the invitation to bid. Bids received without the prescribed security shall be considered nonresponsive, incomplete, and shall be deemed rejected. Bidders shall be entitled to return of bid security provided that a successful bidder shall forfeit his bid security upon refusal or failure to execute the purchase agreement within ten (10) days after the notice of award has been mailed, unless the City is responsible for the delay. If the successful award may be made to the next lowest responsible bidder, the amount of the lowest bidder's security shall be applied by the City to the difference between the lowest bid and the second lowest bid, and the surplus, if any, shall be returned to the lowest bidder. 2.55.140 -Performance bonds. When deemed necessary by the purchasing agent, a performance bond may be prescribed in such amount as he shall find reasonably necessary to protect the best interest of the city, and shall be described in the notice inviting bids. Failure to submit a performance bond in the time prescribed in the notice of award shall be just cause for annulment of the award and forfeiture of the bidder's security. 2.55.150 -Insurance and indemnity. When deemed necessary by the purchasing agent or the city attorney, bids solicited for supplies, materials, equipment or services shall include applicable insurance and indemnity provisions. These requirements shall be described in the notice inviting bids. 2.55.160 -Bid opening. Sealed bids shall be submitted to the city clerk or his or her designee and shall be identified on the envelope as bids. Bids shall be opened in public at the time and place stated in the public notices. A tabulation of all bids received shall be open for public inspection in the city clerk's office during regular business hours for a period of not less than thirty (30) calendar days after the bid opening. 5 2.55.170 -Award of purchase or contract. Purchases or contracts shall be awarded to the lowest responsive and responsible bidder. In determining the lowest responsive and responsible bidder, the following shall be taken into consideration: A. The quality, suitability and efficiency of the supplies, materials, equipment or services; B. The total or life cycle cost of the supplies, materials, equipment or services; C. The delivery, discount terms, and all other conditions submitted in the bid; and D. The reputation of the supplies, materials, equipment, the service reputation of the bidder, and all other information and data required to prove the responsibility of the supplier. 2.55.180 -Rejection of bids. The City shall reserve the right to reject any and all bids in whole or in part and may waive any irregularities or informalities in any bids when such action is considered to be in the best interest of the City. All bids received after designated closing date and time shall be considered nonresponsive and shall be rejected. 2.55.190 -Tie bids. If two (2) or more bids received are for the same total amount of unit price, quality and service being equal and if there is no evidence of collusion between the bidders, then the awarding authority may accept the bid of its choice. In the event of tie bids, if one bid is from a bidder located within the City, the awarding authority shall accept the bid from the local bidder. 2.55.200 -Notification of award. All bidders participating in the competitive sealed bid process shall be notified in writing of the terms and conditions of the successful award. 2.55.210 -Competitive sealed proposals. A. Proposals shall be solicited through a request for proposal prepared by the using department. To the extent possible, the request for proposal shall include or reference all specifications, contract terms, and conditions applicable to the contract or purchase. The request for proposal shall state the following: 1. The criteria for evaluation of the proposal; 2. Relative importance of price, and other factors. B. Notice. Public notice of the request for proposal shall be given in the same manner as provided in Section 2.55.120(C) of this chapter. C. Receipt of Proposals. Sealed proposals shall be submitted to the purchasing agent by the date and time specified in the request for proposal and shall be identified by the request for proposal number. Proposals shall be handled so as to prevent disclosure of the identity of any offeror or the contents of any proposal, to competing offerors during the process of negotiation. A record shall be prepared containing the name of each offeror, the number of modifications received, if any, and a description sufficient to identify the item offered. This record shall be open to public inspection only after contract award. 6 2.55.220 -Negotiation. The most qualified and responsive proposals (minimum of three (3)) will be selected for contract negotiation. Negotiations will be conducted individually with each qualified supplier. All elements of the negotiation process shall be documented by the purchasing agent. Responsible offerors shall be accorded fair and equal treatment with respect to opportunity for discussion and revision of proposals, and such revisions may be permitted after submission in writing and prior to award for the purpose of obtaining the best final offer. 2.55.230 -Award. Award shall be made to the responsible offeror whose proposal is determined to be the most advantageous to the City, taking into consideration price and the criteria established for evaluation set forth in the request for proposal. No other factors or criteria shall be used in the evaluation. The contract file shall contain the basis on which the award is made. 2.55.240 -Notification of award. All suppliers participating in the competitive negotiation process shall be notified in writing of the terms and conditions of the successful award. 2.55.250 -Rejection of proposals. The City reserves the right to reject any or all proposals in whole or in part and may waive any irregularities or informalities in the proposals when such action is considered to be in the best interest of the City. 2.55.260 -Informal bids. Any contract or purchase not exceeding seventy-five thousand dollars ($75,000.00) may be made in accordance with informal bidding procedures; provided, however, that requirements shall not be artificially divided so as to constitute a purchase under this section. A. Solicitation of Bids. Insofar as is practical, the purchasing agent shall solicit proposals from at least three (3) providers, by telephone, written request, or by public notice pursuant to Section 2.55.120(C). B. Bids Recorded. All bids shall be recorded by the purchasing agent and maintained as a public record open for inspection for a period of one (1) year from date of award. C. Bid Award. Award shall be made to the lowest responsive and responsible bidder pursuant to the criteria of Section 2.55.170. D. Bid not Required. Bidding may be dispensed with at the discretion of the purchasing agent if the expenditure is less than five thousand dollars ($5,000.00). 2.55.270 -Inspection and testing. The City shall inspect supplies, materials and equipment delivered, and contractual services performed to determine their conformance with specifications set forth in the invitation to bid, purchase order and/or contract. The purchasing agent shall have authority to require chemical and physical tests of samples submitted with bids and samples of deliveries which are necessary to determine their quality and conformance with specifications. 7 DIVISION 2: Chapter 2.60 of the San Rafael Municipal Code entitled "Professional Services Agreements" is hereby repealed and deleted in its entirety. DIVISION 3: This Ordinance is exempt from the California Environmental Quality Act ("CEQA") pursuant to the State CEQA Guidelines, since it can be seen with certainty that there is no possibility that this Ordinance or its implementation would have a significant effect on the environment (14 Cal. Code Regs. Section 15061 (b)(3)). DIVISION 4: If any section, subsection, sentence, clause, or phrase of this Ordinance is for any reason held to be invalid, such decision shall not affect the validity of the remaining portions of this Ordinance. The City Council hereby declares that it would have adopted the Ordinance and each section, subsection, sentence, clause, or phrase thereof, irrespective of the fact that anyone or more sections, subsections, sentences, clauses, or phrases be declared invalid. DIVISION 5: A summary of this Ordinance shall be published and a certified copy of the full text of this Ordinance shall be posted in the office of the City Clerk at least five (5) days prior to the City Council meeting at which it is adopted. This Ordinance shall be in full force and effect thirty (30) days after its final passage, and the summary of this Ordinance shall be published within fifteen (15) days after the adoption, together with the names of the Council members voting for or against same, in the Marin Independent Journal, a newspaper of general circulation published and circulated in the City of San Rafael, County of Marin, State of California. Within fifteen (15) days after adoption, the City Clerk shall also post in the office of the City Clerk, a certified copy of the full text of this Ordinance along with the names of those Councilmembers voting for and against the Ordinance. ATTEST: '(If. Y/2tvv- LINDSAY LARA, City Clerk The foregoing Ordinance No. 1957 was read and introduced at a regular meeting of the City Council of the City of San Rafael on Monday, April 16, 2018, and was ordered passed to print by the following vote, to wit: AYES: NOES: ABSENT: Council members: Bushey, Colin, Gamblin, McCullough & Mayor Phillips Councilmembers: None Councilmembers: None 8 And will come up for adoption as an Ordinance of the City of San Rafael at a Regular Meeting of the Council to be held on the 7th day of May 2018. LINDSAY LARA, City Clerk 9