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8.4 POLICY Procedures Public Im CITY OF SALINA REQUEST FOR COMMI SS I ON ACT ION DATE T I ME 07/24/95 4:O0 P. M. AGENDA SECT I ON: OR I G I NAT I NG DEPARTMENT: APPROV ED FOR NO. 8 City Manager AGENDA: NO. 4 BY: Dennis M. Kissinger BY :~/~ Item: Ordinance No. 95-9699 AN ORDINANCE ESTABLISHING PROCEDURES FOR CONSTRUCTION, ADDITION, SUBSTANTIAL ALTERATION, RECONSTRUCTION, REPAIR AND MAINTENANCE OF PUBLIC ~ IMPROVEMENTS This ordinance provides lOcal policy and law governing construction contracting related to public improvements. It is designed to address issues such as engineering estimates and some sealed bid procedures which were. previously dealt with through K.S.A. 13 - 1017 (see Charter Ordinance No. 27): In addition, this ordinance establishes and clarifies definitions and procedures for maintenance, repair, change orders, public emergencies and reporting requirements. City staff believes it more comprehensively addresses these issues and will lead to more responsive, efficient and cost-effective contracting procedures along with improvements to reporting and accountability. We believe this ordinance enhances our public service capabilities. It is intended for this ordinance to be included in the City Code as an ordinance of general applicability. Recommended Action: Approve Ordinance No. 95-9699 on first reading. Second reading would be August 7. Effective date would coincide with Charter Ordinance 27 (September 27, 1995) unless a valid protest petition on the Charter Ordinance is submitted. COMMISSION ACTION MOTION BY SECOND BY TO: ORDINANCE NUMBER 95-9699 AN ORDINANCE ESTABLISHING PROCEDURES FOR CONSTRUCTION, ADDITION, SUBSTANTIAL ALTERATION, RECONSTRUCTION, REPAIR, AND MAINTENANCE OF PUBLIC IMPROVEMENTS. BE IT ORDAINED by the Governing Body of the City of Salina, Kansas: Section 1. Poli~ Statement. In order to provide greater flexibility and clarity in the city's procedures in contracting for services related to public improvements, the city has by Charter Ordinance Number 27 exempted itself from K.S.A. 13-1017. In the interests of assuring quality workmanship at the least public cost and providing a system which promotes fair competition between qualified private contractors, the city wishes to adopt this statement of its policies and procedures in contracting for services relating to construction, addition, substantial alteration, repair and maintenance of public improvements. Section 2. Definitions. For purposes of this resolution, the following terms shall have thc meaning indicated. (1) "Addition" shall mean a part added or joined to a main structure. (2) "Competitive Practices" shall mean the process whereby potential contractors are considered and a contract entered into upon the authority of the city manager on the basis of experience, expertise, cost proposals, availability, or any other relevant factors in the public interest. (3) "Maintenance" shall mean to prevent a decline, lapse or cessation from an existing state or condition. (4) "New Construction" shall mean the creation of something new, as distinguished from the repair or improvement of something already existing. (5) "Public Emergency" shall mean any circumstance in which, in the opinion of the city manager, an imminent threat to the public health, safety, or welfare can be abated only by immediately contracting with a private contractor for either new construction, reconstruction, or repair of a public improvement. (6) "Public Improvement" shall mean any city owned building, facility, grounds, park, sidewalk, curb, gutter, bridge, pavement, water or sanitary sewer system component, or storm drainage system component: (7) "Repair" shall mean to restore to a sound or good state after decay, injury, dilapidation, or partial destruction. (8) "Sealed Bid Process" shall mean the process whereby under authority of the governing body (a) a detailed estimate of the cost of a public improvement project is made by the city engineer or his designee; (b) sealed proposals for the project are invited by advertisement published in the official city newspaper; and (c) the governing body lets the work for the project to the responsible bidder submitting the lowest and best bid, taking into consideration any factors relevant to furtherance of the public interest and reserving the fight to reject any and all bids for any lawful reason. (9) "Substantial alteration" shall mean a material change of a thing from one form or state to another, thus making it different from what it was without destroying its identity. Section 2. Process for New Construction, Addition, or Substantial Alteration. Alteration of a public improvement to satisfy requirements governing accessibility for persons with disabilities shall be accomplished by use of competitive practices. In the case of new construction, an addition, or other substantial alteration to a public improvement with an estimated cost: (1) of $10,000 or less, the city shall utilize competitive practices in the awarding of a contract. (2) in excess of $10,000, the city shall utilize a sealed bid process in the awarding of a contract. If all bids exceed the engineer's estimate, the city manager shall provide a report to the governing body citing reasons why the bids exceed the engineer's estimate. The governing body may award the contract notwithstanding the fact it exceeds the engineer's estimate based upon a finding that such an award is in the public interest and that adequate funds are available to complete the project. Section 3. Process for Maintenance and Repairs. In the case of repairs to and maintenance of public improvements, the city shall utilize competitive practices in the awarding of a contract within budget. If the proposed contract for repairs or maintenance exceeds budget, the city manager shall provide a report to the governing body citing the reasons for why the proposed contract exceeds budget. The governing body may award the contract based upon a fmding that such an award is in the public interest and that adequate funds are available. Nothing herein shall prevent the city from using a sealed bid process for significant repairs and maintenance projects. Section 4. Chan~e Orders. a. Project contingency. For each contract awarded by the governing body, the governing body shall establish, and may amend from time to time, a project contingency based upon the size and scope of the project. The city manager may authorize change orders within the amount of thc contingency which arc not prompted by a change in the size or scope of the project. The city manager shall make a monthly report to the governing body of any change orders authorized within any project contingency. 2 b. Change in size or overall scope. Any proposed change orders which are prompted by a proposed change in size or overall scope of the project shall require advance approval of the governing body. Section 5. Public Emergency. In cases of public emergency the city manager may enter into contracts for construction, reconstruction or repair to public improvements on an expedited basis necessary to protect the public health and safety. When emergency contract provisions are used, at the next regular meeting of the board of city commissioners the city manager shall provide a preliminary report on the emergency, actions taken, and an estimated cost. A final report will be provided by the city manager once the emergency project is complete and all costs known. Section 6. Reporting Requirements. The city manager shall make regular reports to the board of city commissioners outlining all maintenance, repair, accessibility alterations, or other contracts in excess of $10,000 entered into using competitive practices. Section 7. Effective Date. This ordinance shall be published once in the official city newspaper following its adoption and shall be effective upon the effective date of Charter Ordinance Number 27. Introduced: July 24, 1995 Passed: John Divine, Mayor [SE d4 ATTEST: Judy D. Long, City Clerk