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HomeMy Public PortalAbout13537ORDINANCE NO. 13537 AN ORDINANCE, repealing Ordinance No. 9845 relating to the methods for purchase of supplies, materials and certain services other than contracts for personal services, contracts for insurance, and contracts for construction, repealing Ordinance 8879 relating to procurement of improvements, repealing Ordinance 9011 relating to procurement for improvements, repealing Resolution 2608 relating to contract renewals, and enacting in lieu thereof a new ordinance relating to the purchase of all supplies, materials and services except as otherwise specified. NOW, THEREFORE, BE IT ORDAINED BY THE BOARD OF TRUSTEES OF THE METROPOLITAN ST. LOUIS SEWER DISTRICT: WHEREAS, Ordinance No. 9845 adopted April 18, 1996, Ordinance 8879, adopted February 10, 1993 and amended with Ordinance 9011 on June 9, 1993, and Resolution 2608, adopted April 13, 2006, are hereby repealed, provided, however, that any existing legal rights, duties, obligations or relationships established by actions taken pursuant to such ordinances and resolutions when effective shall not be altered or extinguished. SECTION 1: DEFINITIONS For the purposes of this ordinance, the following terms, phrases, words and their derivations shall have the meaning given therein. 1. BIDDERS’ LIST shall be a list of suppliers, vendors and contractors that have requested to participate in bidding for District work. 2. CAPITAL IMPROVEMENT PROCUREMENT is any procurement that is made under the Capital Improvement and Replacement Program (CIRP) except for infrastructure repair that does not result in an extension of the useful life of an asset, ordinary maintenance, and items purchased using capital outlay. 3. CAPITAL IMPROVEMENT REPLACEMENT PROGRAM is a multi-year program to expand and rehabilitate MSD’s storm water and wastewater collection and treatment capabilities. 4. CONSENT DECREE is a Court Order memorializing an agreement between the United States Environmental Protection Agency (EPA) and MSD requiring MSD to achieve and maintain compliance with the Federal Clean Water Act, entered on April 27, 2012. 5. COOPERATIVE PROCUREMENT is when MSD purchases supplies, materials or services through a joint purchasing program with political subdivisions and other public governmental bodies such as the State of Missouri. 6. DESIGN BUILD CONTRACTS are contracts between MSD and a design build contractor to furnish the engineering and related design services and the labor, materials and other construction services required for a specific construction project. 7. DISTRICT or MSD is The Metropolitan St. Louis Sewer District. 8. EMERGENCY is a situation or condition which may vitally affect the life, safety, health and/or welfare of employees and/or citizens of the District or their property. An emergency shall also include those situations or conditions where the supplies, materials, equipment, property, and real property of the District are likely to be lost or severely damaged, or the condition may result in disruption of District operations or cause the District to not be in compliance with the Consent Decree. 9. IMMEDIATE NEED is a situation or condition which does not qualify as an EMERGENCY, however, the failure to take prompt action may result in an unnecessary delay which could cause the situation or condition to become an EMERGENCY. Generally, this shall mean that the supplies, materials, or services are required in less than 14 days or the condition may result in disruption of District operations or cause the District to not be in compliance with the Consent Decree. 10. INFRASTRUCTURE REPAIR is construction work that is repair in nature and does not result in an extension of the useful life of an asset. 11. LOWEST AND BEST in determining the lowest and best award shall mean cost and other factors including value, performance, and quality as defined by State Statute. 12. NON-CAPITAL PROCUREMENT shall mean purchase of all supplies, materials, services or capital outlay that do not fall under the CIRP Program, or services that are governed by State Statute as referenced in Item 18. 13. PROFESSIONAL SERVICES shall mean work rendered by an independent contractor with a professed knowledge of some department of learning or science used by its practical application to the affairs of others or in the practice of an art founded on it. A profession is a vocation founded upon prolonged and specialized intellectual training that enables a particular service to be rendered. The word "professional" implies professed attainments in special knowledge as distinguished from mere skill. The term shall not include engineering, surveying, architectural or construction management consulting services. 14. QUOTE shall mean a response from a bidder that is not required to be in sealed bid form and may be received by the District via fax or other non-sealed means. 15. RESPONSIBLE shall mean the bidder has the technical expertise, purchasing &/or manufacturing capacity, product &/or service quality, and financial ability to accomplish the contemplated procurement. In determining lowest responsible bidder, in addition to price, the following may be considered: The ability, capacity, or skill of the bidder to perform the contract or provide the supplies, materials or services promptly or within the time specified, without delay or interference; the character, integrity, reputation, judgment, experience, and efficiency of the bidder; the quality of performance on previous contracts or services; the previous and existing compliance by the bidder with laws and ordinances relating to the contract or supplies, materials or services; the sufficiency of the financial resources and ability of the bidder to perform the contract or provide the supplies, materials or services; the quality, availability and adaptability of the supplies, materials or services to the particular use required; the ability of the bidder to provide future maintenance and service for the use of the subject of the contract; adherence to MWBE policies in place at the time of bidding; and the number and scope of conditions attached to the bid. 16. RESPONSIVE shall mean the bid was received prior to the established bid opening time, in the manner and format prescribed in the solicitation, and the bid is in full compliance with District bid specifications and requirements. 17. SEALED BID shall mean a bid that is required to be completely sealed when received by the District. 18. SERVICES covered in this ordinance shall mean construction, consulting, professional and other services. SERVICES covered in this ordinance shall not mean engineering, architecture, surveying, or construction management as defined by State Statute. The procurement of these services shall be per State Statute or as modified by District policy as allowed by State Statute. 19. SOLE SOURCE shall mean the supplies; materials or services are only available from a single source per defined requirements in Section 3.III. 20. SUPPLIES shall mean and include all materials and equipment. 21. USING AGENCY shall be construed to mean any and all Departments, Divisions, Sections, Boards, Commissions or other units in the District using supplies or procuring contractual services that derive their support wholly, or in part, from funds of the District. SECTION 2: GENERAL GUIDELINES 1. All purchasing will be accomplished within the requirements of the MSD Charter and Missouri State Law. 2. The Purchasing Manager shall be the head, and have general supervision, of Purchasing except as otherwise provided herein, and shall assure the completion of all duties prescribed by this ordinance. 3. Purchasing Manager’s Duties: Except as otherwise provided herein by law or Ordinance or other powers and duties prescribed by Ordinance, it shall be the Purchasing Manager's duty to: a. Purchase or contract for all supplies, materials and services needed by any Using Agency in accordance with purchasing procedures as prescribed by this ordinance and such other rules and regulations as may be prescribed. b. Procure for the District a suitable quality in supplies, materials or services at the best value for the District. c. Discourage collusive or restrictive bidding and endeavor to obtain as full and open competition as possible on purchases. d. Establish, and amend when necessary, purchasing policies and procedures as necessary to assure the continuous and efficient operation of the District. e. Act so as to procure for the District all federal, state, and local tax exemptions to which it is entitled. f. Assure that MSD procurement is consistent with the District’s MWBE inclusion programs and policies. 4. Approving Purchase Orders: The Purchasing Division shall not issue any order for delivery on a contract or purchase without an approved purchase requisition. This certifies that previously unencumbered funds have been made available for the amount of the purchase contemplated. To the extent possible, no delivery shall be made or service performed without an approved purchase order. 5. Inspection of Goods and Services: The Purchasing Manager shall have the authority to delegate to Using Agencies the inspection, receipt and storage of all deliveries made, under rules and regulations which the Purchasing Manager shall prescribe. 6. Authorization for the Use of Electronic Transmissions: The use of electronic media, including the acceptance of electronic signatures, is authorized provided appropriate security is in place to prevent unauthorized access to the bidding, approval, and award process and accurate retrieval or conversion of electronic forms to permit copying are provided. 7. Surplus Equipment: Using Agencies shall submit to the Purchasing Manager, at such times and in such form as shall be prescribed, reports showing stocks of all supplies or materials which are no longer used or which have become obsolete, worn out or scrapped. The Purchasing Manager shall have the authority to transfer surplus stock to other agencies and/or to sell all supplies or materials which have become unsuitable for public use or to exchange the same for, or trade in the same on, new supplies or materials. Sales under this Section shall be made to the highest responsible bidder. 8. Disposal of Surplus Equipment: Surplus property may be sold or donated only after it has been determined by the Purchasing Manager and Director of the Using Agency to be surplus to the District's needs. Surplus inventory shall be offered for sale on a competitive basis that will result in the best return to the District, or donated after approved by Resolution passed by the Board of Trustees. 9. All contractors or consultants retained to perform work under the Consent Decree shall be directed to the District’s website and instructed to read the Consent Decree. SECTION 3: NON-CAPITAL PROCUREMENT: 1. The Purchasing Manager and the Director of Finance shall have the authority to reject all bids or quotes for any one or more supplies, materials or services included in the proposed contract when it is in the best interest of the District. 2. The Purchasing Manager and the Director of Finance shall have the authority to award contracts within the purview of this Ordinance. Contracts may be awarded to the lowest and best bidder that is both responsive and responsible as defined in Section 1 hereof. When the award is not given to the lowest bidder, a full and complete statement of the reasons for placing the order elsewhere shall be prepared by the Purchasing Manager and filed with the other documents relating to the transaction. Bidders must adhere to the letter and intent of the bid specifications; any deviation may result in the bidder being declared non-responsive. 3. Records: The Purchasing Manager shall solicit bids or quotes from prospective vendors by direct mail, electronic mail, telephone, facsimile or other means that is in the best interest of the District. The Purchasing Manager shall keep a record of all open requisitions and the bids or quotes submitted in competition thereon and such record shall be open to public inspection to the extent authorized by law. I Procurements greater than $25,000: Except as otherwise provided herein, all supplies, materials or services, when the estimated cost thereof shall exceed Twenty-Five Thousand Dollars ($25,000), shall be purchased by formal written contract from the lowest responsive and responsible bidder, after due notice inviting proposals. 1. Notice soliciting sealed bids shall be published at least once in one or more newspapers of general circulation in the District or any other additional media available and practical to the District, at least seven (7) days before the day set for receipt of proposals. The required notice shall include a general description of the supplies, materials or services to be purchased, and shall state where bid packages and specifications may be obtained and the time and place for opening bids. The Purchasing Division shall also solicit sealed bids from all responsible prospective suppliers, vendors and contractors who have requested their names be added to a BIDDERS’ LIST, which shall be maintained by the Purchasing Division. Such initial notice of solicitation will be provided to those entities listed by fax or email at least seven (7) days before the day set for receipt of proposals. The notice will include the details of the proposed purchase or sale as formally published for general circulation. 2. When deemed necessary by the Purchasing Manager, surety bid bonds or cash deposits of five percent (5%) of the total dollar amount bid shall be prescribed in the public notice inviting bids. Unsuccessful bidders shall be entitled to the return of their surety bid bonds or cash deposits. A successful bidder shall forfeit any deposit or surety required by the Purchasing Manager upon failure by the successful bidder to enter into a contract within ten (10) days after the award. 3. All bids shall be submitted sealed to the Purchasing Division and shall be identified as bids on the envelope. Bids shall be opened in public at the location and on the day and at the time stated in the public notices and bid packages or addenda. The Purchasing Division shall tabulate all bids and such tabulation and bids shall be available for inspection within five (5) days after the bid opening. The Purchasing Division shall forward the tabulation to the Using Agency, which shall return the bids with recommendations to the Purchasing Division within the shortest practicable time. 4. All procurements for Professional Services greater than $25,000 per year must be approved by the Board of Trustees. Exercising of renewal options under Professional Services contracts must be approved by the Board of Trustees prior to being exercised. II Procurement less than $25,000 1. Dollar Threshold Exception to Formal Advertising Requirements: All purchases of supplies, materials or services of less than the estimated value of Twenty-Five Thousand Dollars ($25,000) may be made in the open market without newspaper advertisement and without observing the procedure prescribed in Subsection I. 2. Competition Required: For all open market purchases, at least three competitive quotes will be solicited whenever possible. Award shall be made to the lowest responsive and responsible bidder in accordance with the standards set forth in Subsection I. 3. Purchases in the amount of Two Thousand Five Hundred Dollars ($2,500) or less may be made directly by the Using Agency without receiving competitive bids. 4. No contract or purchase shall be subdivided to avoid the requirements of competitive bidding. III Sole Source Procurement: The Director of Finance can authorize sole source procurement of supplies, material or services upon advance presentation of sufficient documentation that establishes one or more of the following: a) that a part or component for existing equipment, materials or services can only be procured from the original manufacturer or their authorized regional representative, or; b) when the contemplated acquisition is for technical services in connection with the assembly, installation, or servicing of equipment of a highly technical or specialized nature; c) that the supplies, materials or services are required for District testing of new items to determine suitability, or the services of a recognized expert are required, or d) when such procurement would be in the best interest of the District. SECTION 4: CAPITAL IMPROVEMENT PROCUREMENT: 1. All contracts for capital improvements shall be purchased, at a minimum, in accordance with the requirements set forth in the MSD Charter and Missouri State law. 2. Capital Improvements over Twenty Five Thousand Dollars ($25,000) shall be purchased by formal written contract. 3. Advertisements for capital improvements: The District will solicit sealed bids for capital improvement projects for a minimum of 21 calendar days, unless the project is an IMMEDIATE NEED or an EMERGENCY. This advertising period can be longer at the discretion of the District. 4. Submission of Sealed Bids: Sealed bids shall be opened in public at the location and on the day and time stated in the public notices, bid packages or addenda. The Purchasing Division shall tabulate all bids and such tabulation of bids shall be available for inspection within five (5) days after the bid opening. 5. Bid Security: Each bid shall be accompanied by bid security consisting of a certified check or cashier’s check payable to The Metropolitan St Louis Sewer District, in an amount not less than five percent (5%) of the bid, less allowances specified in the bid documents, or a bid bond in the penal sum of not less than five percent (5%) of the bid, less any allowances specified in the bid documents. 6. Rejection of Bids: Projects will be re-bid when it is in the best interest of the District. Except for such right of rejection, the District shall let the contract to the lowest 7. Responsive and Responsible Bidder. Contracts for improvements shall be confirmed by Ordinance adopted by the Board and shall contain all requirements set forth in Charter. 8. Contracts for Improvements: All contracts for improvements which involve labor shall contain provisions that the prevailing rates of pay shall be paid to skilled and unskilled labor employed thereon and that there shall be no discrimination in the selection or employment of labor because of race, creed, or color; and such provisions shall be stated in the invitations for bids and shall be included in proposals or bids for the work. 9. Alternative Delivery Contracts: The District may use design-build and other alternative delivery methods to make any improvements as permitted by Missouri law and Charter. 10. Bonds: Within a reasonable time after award of the contract and prior to the execution of the contract documents, the apparent successful bidder shall secure and file with the District a good and sufficient bond with a surety or sureties engaged in the bonding business, authorized under the laws of Missouri to do business in this State, and approved by the District. Said bond shall be conditioned upon the obligation of the payment by apparent successful bidder of all persons supplying labor and material in the prosecution of the work provided for in the contract in an amount approved by the District. Provided that for projects less than $25,000 the requirement for bonds may be waived if specified in the bid documents. 11. Insurance: Within a reasonable time after award of the contract and prior to execution of the contract documents, the apparent successful bidder shall secure and file with the District satisfactory evidence of those insurance policies required by the bid documents. 12. If any bidder awarded a contract shall fail to enter into a binding contract or furnish required performance security or insurance within the time specified in the bid documents, the District may take all steps to forfeit said bidder’s bid security to the District. 13. Return of Bid Security: As soon as a contract for capital improvements has been awarded, the District shall thereupon return to each unsuccessful bidder (except the next lowest responsive and responsible bidder) the bid security of bond or check accompanying each respective bid. The bid security of the next lowest responsive and responsible bidder shall be retained until the contract documents with the apparent low bidder have been signed, delivered and accepted by the District; thereupon, the District shall return all retained bid security to the next lowest responsive bidder. 14. Pre-Qualification Procedure: The District may require prequalification of prospective bidders for a project or projects. In order to prequalify for a project, a prospective bidder must provide all information requested on forms approved by the District and must comply with all reasonable requirements designated by the District. 15. Method of Payment: All contracts for capital improvements shall specify method and timing of payment. All contracts for capital improvements shall specify that the District and the contractor shall comply with the prompt payment requirements of Missouri law. SECTION 5: IMMEDIATE NEED and EMERGENCY PROCUREMENT 1. In case of an IMMEDIATE NEED or EMERGENCY, as defined in Section 1, which requires the immediate purchase of construction, supplies, materials or services and when there is not adequate time to adhere to the formal procurement practice prescribed in this Ordinance, the Executive Director and Director of Finance shall be empowered to authorize the Purchasing Manager to secure by open market procedure, as herein set forth, at the lowest possible cost, any construction, supplies, materials or services. 2. An emergency condition exists when any part of the District's system, facilities or property is in a condition such that it is reasonably likely to cause loss of life, personal injury, property damage or other serious consequence or as otherwise defined in SECTION I. When the Executive Director determines that an emergency condition exists and that sufficient unencumbered funds are available, then the Executive Director is authorized to contract for such work or repairs. The contract for such work or repairs shall provide for a not-to-exceed contract amount and shall be effective immediately upon its execution, nothing in this ordinance to the contrary notwithstanding. Provided, however, that the Executive Director shall furnish to the Board a full explanation of the facts and circumstances upon which the determination was based to let said contract, and the Secretary-Treasurer shall record the same in the Journal of the Board. SECTION 6: NON-DISCRIMINATION CLAUSES 1. All contracts for supplies, materials or services, wherein the District is a party, shall contain non-discrimination in employment clause(s) which shall provide that the contractor in the performance of the contract will not discriminate against any employee or applicant for employment because of race, creed, or religion, color, sex, or national origin. Actions of the contractor covered by the non-discrimination clause shall include but not be limited to the following: Employment; upgrading, demotion or transfer; recruitment or recruitment advertising; layoff or termination; rates of pay or other forms of compensation; and selection for training, including apprenticeship. 2. Prevailing rates of pay shall be paid to skilled and unskilled labor employed on contracts to which the provision is applicable. 3. The contractor will adhere to the District’s Minority and Women Owned Business (MWBE) policy in effect at the time of bidding to the extent applicable. SECTION 7: TYPES OF CONTRACTS 1. Multi-Year Contracts: The Director of Finance and the Purchasing Manager shall have authority to enter into contracts for supplies, materials or services for any period of time deemed to be in the best interests of the District provided the term of the contract and conditions for renewal or extension, if any, are included in the solicitation and the funds are available for the first fiscal year at the time of award. Payment and performance obligations for succeeding fiscal periods shall be subject to the availability and appropriation of funds therefor. 2. Cooperative Procurement: The District may either participate in or administer a Cooperative Purchasing Agreement for the procurement of supplies, materials or services with one or more Public Procurement Unit. 3. The Purchasing Manager shall use any type of contract consistent with the District Charter and Missouri law that will promote the best interest of the District. The Purchasing Manager may use a contract format other than firm fixed when it is in the best interest of the District. The foregoing Ordinance was adopted on December 13, 2012 by the following vote – Ayes – E. Ross, R. Berry, A. Mandel, J. Buford, M. Yates, and J. Goffstein. Nays – None. Secretary-Treasurer