HomeMy WebLinkAbout2010-05-17 Ordinance 5081Ordinance No. 5081
Ordinance of the Council of the City of Palo Alto Amending
Section 2.30.360 (Exemptions from Competitive Solicitation
Requirements) of Title 2 (Administrative Code) of the Palo
Alto Municipal Code Regarding Contracts and Purchasing
Procedures
The Council ofthe City of Palo Alto does ORDAIN as follows:
SECTION 1. Section 2.30.360 of Chapter 2.30 of Title 2 of the Palo Alto
Municipal Code is hereby amended to read, as follows:
2.30.360 Exemptions from competitive solicitation requirements.
The following are exemptions from the informal and formal competitive solicitation
requirements of this chapter. It is expected that the exemptions will be narrowly applied. The
department requesting an exemption shall provide all relevant information supporting the
application of the exemption to the purchasing manager. Based on this information, the
purchasing manager shall make a recommendation to the city manager and the city manager shall
determine whether an exemption from competitive solicitation requirements applies. Nothing
herein is intended to preclude use of competitive solicitations where possible.
(a) Emergency contracts as defined in Section 2.30.21O(f).
(b) Situations where solicitations of bids or proposals would for any reason be impractical,
unavailing or impossible provided that in the case of a public works project, the project is not
otherwise required by the Charter to be formally bid. These situations are those where
solicitations of bids or proposals would not be useful or produce any advantage for the city.
Situations where solicitations of bids or proposals would be impractical, unavailing or
impossible, include, but are not limited to, the following:
(1) Specifications cannot be drawn in a way that would enable more than one vendor or
contractor to meet them;
(2) Due to circumstances beyond the control of the city, the time necessary to use the
competitive solicitation process procedures and requirements would result in a substantial
economic loss to the city, or the substantial interference with a required city operation; and
(3) Special conditions attached to a grant, donation or gift requires the use of particular .
goods and/or services.
All requests for exemptions under this subsection shall be supported by written documentation
(facsimile or electronic mail may be used), approved by the department head and forwarded to
purchasing.
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(c) Where competitive bids or requests for proposals have been solicited and no bid or
proposal has been received or no bid or proposal meeting the requirements of the invitation to
bid or request for proposal has been received, provided that, in the case of a public works project,
the project is not otherwise required by the Charter to be formally bid.
(d) Contracts for goods, wholesale commodities and related services, general services or
professional services available from only one source where there is no adequate substitute or
equivalent provider. Examples of acceptable sole source purchases are: equipment for which
there is no comparable competitive product, proprietary products sold directly from the
manufacturer, a component or replacement part for which there is no commercially available
substitute and which can be obtained only from the manufacturer, items where there is only one
authorized distributor in the area, and items where compatibility with items in use by the city is
an overriding consideration. All requests for sole source purchases shall be supported by written
documentation (facsimile or electronic mail may be used), approved by the office or department
head and forwarded to purchasing.
(e) Contracts for goods where, pursuant to Section 2.30.900, the city manager has
determined that standardization of the supplies, materials or equipment is permissible.
(f) Placement of insurance coverage and bonds.
(g) Legal services contracts, including outside counsel and experts for litigation or other
legal· proceedings.
(h) Professional services contracts for private development related studies and services
when funded wholly by private developers.
(i) Professional services contracts where the estimated total expenditure by the city,
regardless ofterm, does not exceed $25,000.00.
(j) Cooperative purchases where the city participates with one or more other governmental
or public agencies in a cooperative agreement, provided the solicitation process used is
substantially similar to the process required by this chapter; or
(k) The use of another governmental or public agency's contract provided: (i) the agency
used a solicitation method substantially similar to the method required by this chapter; (ii) the
contract allows other agencies to utilize or the vendor authorizes the city to utilize; (iii) the
contract is consistent with requirements specified in this Code; and (iv) there is an overall value
to the City's utilizing the contract versus the city performing it's own solicitation.
(1) Contracts with Northern California Power Agency, Transmission Agency of Northern
California, and Western Area Power Administration to procure wholesale utility commodities
and related services that meet the requirements of Section 2.30.340(d).
(m) Contracts with Pacific Gas and Electric Company and the California Independent
Service Operator Corporation for energy transmission services to the extent necessary and
expedient to provide for the general health, safety and welfare of its citizens.
(n) Contracts with any public agency or governmental body to construct a public work
where the public agency or governmental body has used methods similar to those required by
this chapter to contract for the work.
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(0) Contracts with any public utility holding a certificate of public convenience and
necessity or any entity holding a cable communications system franchise pursuant to Chapter
2.10 to constrUct a public work where such work involves property of such public utility or cable
communications system franchisee and is otherwise of direct concern to both the city and such
public utility or cable communications system franchisee, provided that the project is not
otherwise required by the Charter to be formally bid.
(P) Contracts with private developers to construct public improvements in connection with
their development project even if the city contributes funds to the improvement project, provided
that the project is not otherwise required by the Charter to be formally bid.
(q) Projects where the public work is performed by the city with its own employees.
(r). Contracts where the estimated total expenditure by the city does not exceed $5,000.00.
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