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HomeMy WebLinkAbout179 - 11/18/1997 - AMENDING THE CITY CODE TO PERMIT COMPETITIVE NEGOTIATION OF STRATEGIC BUSINESS ALLIANCES BY UTILITIE ORDINANCE NO. 179, 1997 OF THE COUNCIL OF THE CITY OF FORT COLLINS AMENDING CHAPTER 8 OF THE CODE OF THE CITY OF FORT COLLINS TO PERMIT COMPETITIVE NEGOTIATION OF STRATEGIC BUSINESS ALLIANCES BY CITY UTILITIES WHEREAS, Section 27 of Article V of the Charter of the City of Fort Collins (hereinafter "Charter") authorizes the Council to approve Hiles and regulations for the competitive bidding of procurement by the Purchasing Agent, and to establish such exceptions to that process as it may prescribe by ordinance; and WHEREAS, Section 29 of said Article V permits the Council,by ordinance,to authorize the Purchasing Agent to exempt public improvements from the competitive bidding and competitive proposal processes existing in the Code; and WHEREAS, the Code of the City of Fort Collins (hereinafter"Code") contains particular methods for the competitive award of contracts for the procurement of services and materials in Chapter 8, Article IV; and WHEREAS,the existing Code provisions relating to purchasing and contracting do not allow for a sufficiently flexible and effective means to enter into business alliances in a competitive market environment; and WHEREAS, in 1995, the Council adopted Resolution 95-62, expressing the Council's encouragement to the City Manager,Utilities Director and staff to seek out and implement processes, procedures and business practices to insure a competitive, flexible position as the electric industry is deregulated,and to submit appropriate Code changes for Council's consideration to carry out those processes, procedures and practices; and WHEREAS, the City's Purchasing Department has identified and further developed this additional competitive procurement tool to facilitate the effective development of strategic business alliances and plans by the City's utilities; and WHEREAS,the Council has determined that the success of the City's utilities is dependent upon the adoption of a competitive negotiation process designed to permit greater flexibility while maintaining a fair and reasonable evaluation and decision making process; and WHEREAS, the Council farther has determined that the procurement of public improvements, if accomplished by a City utility in accordance with the competitive negotiation process, is appropriately exempt from the bidding or proposal process requirement set forth in Section 29 of the Charter. NOW,THEREFORE,BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS that the following new Section 8-159 is hereby added to Article IV of Chapter 8 of the Code, as follows, with the existing Section 8-159 and all subsequent Sections to be renumbered accordingly and all Code references revised as necessary to reflect these amendments. ARTICLE IV. PURCHASING AND CONTRACTING DIVISION 3.CONTRACT FORMATION AND AWARD Sec. 8-159. Competitive Negotiated Procurement. (a)Procurement for goods,services,products for resale or redistribution,distribution services usage, and competitive business arrangements that are related to the establishment of strategic business plans or relationships of any City utility in a competitive market environment shall be eligible for award by competitive negotiation under this Section, provided that the following conditions are met: (1)The Purchasing Agent determines in writing,with the approval of the City Manager,that the use of competitive sealed bidding or competitive sealed proposal processes are either not practicable or not advantageous to the city; and (2)There is a minimum of two vendorsibusinesses willing and able to provide the basic goods,services or products to be procured through competitive negotiation. (b)In order to initiate a competitive negotiated procurement under this Section,the procuring utility shall, in a manner acceptable to the Purchasing Agent as sufficient to identify potential appropriate and qualified vendors of the goods or services to be procured,investigate and research the market for such goods or services,and identify those vendors determined to be appropriate and qualified candidates in light of the competitive and other interests of the procuring utility. (c) The procuring utility may contact selected vendors,or may consider appropriate and qualified vendors that have initiated contact with the city,provided that a rational basis for identifying and selecting candidate vendors in view of the interests of the procuring utility is applied consistently to all vendors reasonably known to the procuring utility. (d) The Purchasing Agent shall, with the approval of the City Manager, be responsible for accepting and soliciting all offers made on behalf of the procuring utility under the provisions of this Section. (e)Each vendor participating in competitive negotiations under this Section shall be accorded a fair and reasonable opportunity to present and explain the goods or services to be provided by such vendor. (f)The basis for final selection of a vendor under a competitive negotiation process, and the final terms of the contract under which goods or services shall be procured under this Section,shall each be subject to the review and approval of the Purchasing Agent and City Manager. (g)Prior to the renewal or extension of any contract for goods or services under this Section beyond the original potential term of such contract, the City Manager or procuring utility shall require that an assessment of the subject vendor's performance and the benefits to the City of the terms of such contract be conducted by a qualified third party,to be selected by the Purchasing Agent. Introduced, considered favorably on first reading, and ordered published this 4th day of November, A.D. 1997, and to be presented for final passage on the 18th day of November, A.D. 1997. — Mayor / ATTEST: City Clerk Passed and adopted on final reading this 18th day o7NcrV>emo r, A.D. 199.7:'-'- Mayor ATTEST: City Clerk