Loading...
1995-12-12 Agenda CITY OF RICHFIELD CHARTER COMMISSION MEETING TUESDAY. DECEMBER 12. 1995 7:30 P.M. LOBBY CONFERENCE ROOM,#1 CITY HALL 6700 PORTLAND AVENUE AGENDA 1. Roll Call 2. Approval of October 19, 1995 Minutes 3. Review of Section 6.05 of City Charter, Purchases and Contracts (see attached) 4. Committee Report on Section 2.05 of City Charter, Council Vacancies 5. Other Business 6. Adjournment J 6700 Portland Avenue • Richfield, Minnesota 55423-2599 City Manager Mayor Council James D. Prosser Martin Kirsch Don Priebe Michael Sandahl Susan Rosenberg .Russ Susag November 30, 1995 Richard Starleaf President, Charter Commission 6519 Nicollet Avenue Richfield, MN 55423 Dear Mr. Starleaf: Enclosed for your review is a copy of the Council Letter concerning the discussion of a proposed amendment to the City Charter regarding the sealed competitive bidding threshold for contracts. The Council reviewed the proposed ordinance on November 27 and requested that it be forwarded to the Charter Commission. The City Council has requested that the Charter Commission review the proposed amendment and provide their recommendation to the Council regarding the proposed amendment. It would be helpful if the commission could provide their recommendation in mid- January so the Council could conduct first reading at their January 22 meeting. If you have any questions, please contact Steve Devich, Administrative Services Director at 861-9702, or me at 861-9705. Sincer I , r Jams Prosser City I~lay~ager JDP:cak Enclosure Copy: Steven Devich, Administrative Services Director Thomas Ferber, City Clerk The Urban Hometown Telephone (612) 861-9700 • Fax (612) 861-9749 An Equal Opportunity Employer CITY OF RICHFIELD, MINNESOTA City Council Letter No, Agenda November 27, 1995 Issue Statement: Consideration of an ordinance amendment to change the City Charter to reflect current state law with respect to the contract Bid Law. Background: For several years the City Charter followed the State Statutes regarding the Contract Bid Law. During that period of time, both the City Charter and the State Statutes required that a formal sealed bidding process be used for all municipal contracts in excess of $15,000. The statutory sealed bidding threshold has been periodically increased to reflect inflation. The City Charter has also been changed periodically to match increases in the state law. However, the Charter provisions pertaining to the sealed bidding threshold have not been amended since 1983 and have fallen far below the current statutory threshold for competitive sealed bids. While the Charter still requires sealed bidding at the $15,000 threshold, the statutory threshold was increased to $25,000 in the early 1990s. Deloitte & Touche, the City's auditors, and the City Attorney have recommended that the sealed bidding threshold in the City Charter be amended to mirror current State Statute threshold limits for sealed bidding. The process necessary to amend the City Charter is more complex than affecting a change in the City's Ordinance Code. In order to amend the Charter, the City Council must first review a proposed ordinance to amend the Charter, then forward it to the Charter Commission with a request that they make a recommendation on the matter. The Charter Commission would then review the proposed ordinance and send it back to the City Council with their recommendation. The City Council would then give the ordinance first reading and set a public hearing and second reading of the proposed ordinance. At the second reading, the proposed ordinance must pass by unanimous vote of the City Council in order to accomplish the change in the City Charter. In addition, the Charter also requires that the City Manager may make or let contracts or sales for under $10,000 and may make contracts and/or sales for in excess of $10,000 but less than $1.5,000 provided the City Manager first secures City Council approval Further complicating this issue is Resolution 6847 from December 1983 which states that all purchases in excess of $5,000 but below $10,000 shall be made only after the City Manager notifies the City Council on a City Council agenda. In practice, this becomes another level of approval as a consent calendar item. At the November 6, 1995 City Council 'Study Session the City Council discussed this issue and requested that staff prepare the following for a future regular City Council meeting: 1. A proposed charter amendment which would adopt Minnesota Statutes, Section 471.345, Subd. 3 by reference. Th s statute provision sets forth the Uniform Municipal Contracting Law. 2. Prepare a draft resolution stating provided to the City Council in a i Council meetings. all purchases made in excess of $10,000 be ~randum or report format at the time of The Charter amendment and resol to that request. now under review by the City Council respond The affect of the Charter amendment, as proposed, would establish the State Statute as a basis for making contract purchases and remove the Charter requirement for pre- approval authority of the City Council for amounts between $10,000 and $15,000. However, the City Council could establish any pre-approval process or dollar threshold desired through a resolution relating to purchasing practices: The draft resolution, included for disc approval authority, but would instead purchases between $10,000 and $25 until after the Charter amendment iss ssion purposes only, would not reinstate pre- ~stablish a formal notification process for X00. No action on the resolution is recommended has been concluded. Recommended Motion: Review the attached proposed ordin the City Charter and related resoluti~ Charter Commission for review and ice regarding competitive bidding amendment of and refer the Charter amendment to the City for recommendation. Basis of Recommendation: ~ 1. The State Statutes were amended a few years ago to increase the threshold for sealed competitive bidding of cont acts from $15,000 to $25,000. Prior to that increase the City Charter had mirr~red the State Statutes with respect to the sealed bidding threshold. i 2. Both the City Attorney and the City's Auditor's, Delloitte & Touche, have recommended that the City chang~ the current City Charter provision to increase the competitive sealed bidding threshold from $15,000 to $25,000 to match the statute. 3. Preparing specifications and biddi process. Contracts under $25,OOi process of obtaining competitive c $15,000. ~ contracts is a time consuming and costly would be more efficiently handled through a rotation as is now the case for City projects under 4. For ease of administration and clarity,, it is desirable to have a competitive sealed bidding threshold which is equal to that of the State Statute.. To that end, both the current Charter provision and related resolution should be .reviewed. Alternative. Recommendation: 1. The City Council may decide not to further consider this proposed change to the City Charter. 2. The City Council may decide to consider increasing the sealed bidding threshold to an amount different than the one suggested in the proposed ordinance. Discussion/Decision Mode: Discussion of this item is suggested. at the City Council Meeting of November 27. The process to change the City Charter would require several months to complete. It would be desirable to implement the new threshold as soon as possible if the City Council approves such. a change. Respectfully submitted, James D. Prosser City Manager JDP:cak ~-~ ORDINANCE NO. . AN ORDINANCE RELATING TO CITY GOVERNMENT.: AMENDING CHAPTER 6 OF THE RICHFIELD CITY CHARTER- THE CITY OF RICHFIELD ORDAINS: Section 1. Background : findings ; authority . 1.01. The City of Richfield (City) is governed by a home rule charter adopted pursuant to the Constitution of the State of. Minnesota and Minnesota Statutes, Chapter 410 (Aet) . 1.01. The Charter Commission of the City has proposed the adoption of an amendment (Amendment) to Chapter 6 of the charter and recommended to the City Council that the' Amendment be adopted by City Council ordinance in the manner prescribed by Section 410.12, Subdivision 7, of the Act. The form of the Amendment is set out in Section 2.02. 1.03. A public hearing on the Amendment was held on 199_ by the City Council after two weeks' published notice containing the text of the Amendment as required by the Act.. The notice contained a brief description of the nature and scope of the Amendment. All persons desiring to be heard with reference to the Amendment were heard at the public hearing. 1.04. The Council finds and determines that it is in the best interests of the City and its inhabitants that the Amendment be adopted. Sec. 2. Adoption: effective date; filing. 2.01. The Amendment as proposed by the Commission is adopted . 2.02. The text of the proposed amendment is as follows: Chapter 6 of the City Charter is amended`in the following respects 1) by amending Section 6.05 to read: Section 6.05. Purchase and Contracts . „~ +~.~ ~;+.r r~ , .,;~ Every contract for the sale or purchase of merchandise, materials or equipment, or the alteration thereof, or for the construction, alteration, repair or maintenance of real or personal property, where the amount involved is more than the dollar amount contained in Minnesota DJK83191 CR225-5 $-5 Statutes, Section 471.345 The Council may, however, of the Charter, and other a resolution adopt further contracts. "" +''^„ ^ r+~.' 2) By repealing bd. 3. shall be let only by the City Council upon itv Manager to the lowest responsible bidder3 rej ct any and'all bids. Subject to the provisions liable law, the Council may by ordinance or b re~tzlations for making of bids and letting of 6.06 thereof in its entirety. 2.03. This ordinance is effective 199_. If, by 199 ~ petition requesting a referendum on this ordinance, signed by the number of registered voters of the City required by the Act, is filed with the City Clerk, this ordinance will not be effective until approved by 51% of the voters voting on the question of its adoption at a special election called by the Council for that purpose. 2.04. On the effective date of the Amendment, the City Clerk is authorized and directed to file copies of the Amendment with the Secretary of State of the State of Minnesota, the Hennepin County Recorder, and the City Clerk's office together with the certificate required by Section 410.11 of the. Act. Mayor ATTEST: Jerk 1 DJR83191 CR225-5 ~-~ NOTICE OF PUBLIC HEARING ON PROPOSED AMENDMENT TO RICHFIELD CITY CHARTER NOTICE IS HEREBY GIVEN that the City Council of the City of Richfield, Minnesota will conduct a public hearing on 199 at P.M. , or as soon thereafter as the matter can be heard, in the Council Chambers in City Hall, 6700 Portland Avenue South, in the City, to consider oral and written testimony concerning a proposed amendment to Chapter 6 of the Home Rule Charter of the City. In general terms, the .proposed amendment provides that competitive bids must be taken for contracts exceeding an amount provided for in state law which is currently $25,000. The amendment also eliminates duplicate language by repeating charier section 6.06. It is recommended by the Charter Commission that the amendment be adopted by ordinance of the City Council in the manner prescribed by Minnesota Statutes, Section 410.12, Subdivision 7. Under that procedure, designed to facilitate routine charter amendments, the City Council must, if the Council approves the amendment, adopt the amendment by ordinance after the public hearing by a unanimous vote of all of its members . The adopting ordinance is effective 90 days after its passage and publication, but if within 60 days thereof a petition signed by a number of registered voters equal to two percent of the votes cast in the City at the last state general election,. or 2,000 registered voters, whichever is less, is filed with the City Clerk, the ordinance is not effective until approved by 51 a of votes cast on the amendment at the regular municipal election or a special election called for that purpose . The proposed amendment would amend Chapter 6 of the Charter by amending: Section 6.05 to read tracts . T~ r •+ rrt.,,,., M^ ., .,,r^ .,.5.,~ .,.~ _.,_ __- - - - - o - ~ +w^ r;+-- ~^_•~^;~ Every contract for the sale or purchase of merchandise, materials or equipment, or the alteration thereof, or for the construction, alteration, repair or maintenance of real or personal property, where the amount involved is more than $x$88 the dollar amount .contained in Minnesota Statutes, Section 471.345, Subd. 3. shall be let only by the City Council upon the recommendation of the City Manager to the lowest responsible bidder ~~~at~~e~' a~a-~a ~ ~• ' The Council may, however, reject any and all bids. Subject to the provisions of the Charter, and other applicable law, the Council may by ordinance or b DJR83191 CR225-5 9pcr~~~6r-€A3~ ~~e ,_~ $'~ resolution adopt further contracts. "" ^''`'^" ^ ^+~ tions for making of bids and letting of And by repealing Section 6.061 in its entirety. Anyone wishing to express an opinion about the proposed amendment orally or in writing will be heard at the public haring. Dated: ~~ 1~9_ BY ORDER OF THE CITY COUNCIL /s/ City Clerk r 1 DJR83191 CR225-5 (~ c ::.~~ . ~: 471.345 MUNICIPAL RIGHTS, POWERS, DUTIES ~., 1180 ` 471.30 ' [Repealed, 1965 c 670 s 14] ~ ' ' - 471.31 ~ [Repealed, 1965 c 670 s 14] - 1471.32 [Repealed, 1965 c 670 s 14] a; ~ '' 471.323 [Repealed, 1965 c 670 s 14) f ' ~ ~ 471.33 [Repealed, 1965 c 670 s 14] 471.34 [Repealed, 1959 c 261 s 4] ' 471.345 UNIFORM MUNICIPAL CONTRACTING LAW. ' Subdivision 1. Municipality defined. For purposes of this section, "municipality^ means a county, town, city, school district or other municipal corporation or political subdivision of the state authorized by law to enter into contracts. Subd. 2. Contract defined. A "contract" means an agreement entered into by a municipality for the sale or purchase of supplies, materials, equipment or the rental thereof, or the construction, alteration, repair or maintenance of real or personal prop. erty. Subd. 3. Contracts .over $25,000. If the amount of the contract is estimated to exceed $25,000, sealed bids shall be solicited by public notice in the manner and subject to the requirements of the law governing contracts by the particular municipality or class thereof provided that with regard to repairs and maintenance of ditches, bids shall not be required if the estimated amount of the contract does not exceed the amount specified in section 103E.705, subdivisions 5, 6, and 7. Subd. 4. Contracts from $10,000 to $25,000. If the amount of the contract is esti- mated to exceed $10,000 but not to exceed $25,000, the contract may be made either upon sealed bids or by direct negotiation, by obtaining two or more quotations for the purchase or sale when possible, and without advertising for bids or otherwise comply- ingwith the requirements of competitive bidding. All quotations obtained shall be kept on file for a period of at least one year after receipt thereof. Subd. 5. Contracts less than $10,000. If the amount of the contract is estimated to be $10,000 or less, the contract may be made either upon quotation or in the open market, in the discretion of the governing body. If the contract is made upon quotation it shall be based, so far as practicable, on at least two quotations which shall be kept on file for a period of at least one year after-their receipt. Subd. Sa. County or town rental contracts. If thg amount of a county or town con- tract for the rental of equipment is estimated to be $60,000 or less, the contract may, in the discretion of the county or town board, be made by direct negotiation by obtain. ing two or more quotations for the rental when possible and without advertising for bids or otherwise complying with the requirements of competitive bidding. All quota- tions shall be kept on file for a period of at least one year after their receipt. Subd. 6. Applicability of other laws. The purpose of this section is to establish for all municipalities, uniform dollar limitations upon contracts which shall or may be entered into on the basis of competitive bids, quotations or purchase or sale in the open market. To the extent inconsistent with this purpose, all laws governing contracts by a particular municipality or class thereof are superseded. In all other respects such laws shall continue applicable. Subd. 7. Minimum labor standards. Nothing in this section shall be construed to prohibit any municipality from adopting rules, regulations, or ordinances which estab- lish the prevailing wage rate as defined in section 177.42, as a minimum standard for wages and which establish the hours and working conditions prevailing for the largest number of workers engaged in the same class of labor within the area as a minimum standard for a contractor's employees which must be agreed to by any contractor before the contractor may be awarded any contract for the furnishing of any labor, material, supplies, or service. Subd. 8. Procurement from economically disadvantaged persons. For purposes of this subdivision, the following terms shall have the meanings herein ascribed to them: i i ~, -: 1181 MUNICIPAL RIGI3'TS, POWERS, DUTIES 471 .345 (a) "Small targeted group business" means businesses designated under section - 16B.19. (b) "Business entity" means an entity organized for profit, including an individual, partnership, corporation, joint venture, association, or cooperative. Nothing in this sec ron shall be construed to prohibit any municipality from adopt- ing aresolution, rule, regulation, or ordinance which on an annual basis designates and sets aside for awarding Ito small targeted group businesses a percentage of the value of its anticipated total procurement of goods and services, including construction, and which uses either a negotiated price or bid contract procedure in the awarding of a pro- ' curement contract undelr a set-aside program as allowed in this subdivision, provided -1 .that any award based o~ a negotiated price shall not exceed by more than five percent the municipality's estimated price for the goods and services if they were purchased on a the open market and not under the set-aside program. it Subd. 9. [Repealed,) 1990 c 549 s 3) '- Subd. 10. Hospital shazed service purchasing. Supplies, materials, or equipment to be used in the operation of a hospital licensed under seciions 144.50 to 144.56 that o are purchased or leased under a shared service purchasing arrangement whereby more ~t than one hospital purchases supplies, materials, or equipment with one or more other ~r hospitals either through one of the hospitals or through another entity, may be pur- ;11 chased without regard to the competitive bidding requirements of this section, if the -1t following conditions are met: (1) the hospital's g I- er he iy- ;pt ed yen on °pt ~n- ay, in- for ~ta- for be pen s by aws d to :tab- j for :gest num ;fore Trial, es of hem: (2) the shared servi than one source on the 1 and (3) the arrangement tives to review the purch ments. Subd. 11. Fuel cont amount of the contract, of fuel required for the g erned by subdivision 4. Subd. 12. 1'rocurem hibits a municipality frog an annual basis designai described in section 268 ment of goods and servic price or bid contract prop aside program as allowed tiated price shall not exc price for the goods and under the set-aside progr Subd. 13. Energy e$ vision. (a) "Energy conserve designed to reduce energ (1) insulation of the (2) storm windows a and doors, heat absorbin terns, additional glazing, modifications that reduce (3) automatic ener; (4) heating, ventila (5) replacement or authority authorizes the arrangement; purchasing program purchases items available from more s of competitive bids or competitive quotations of prices; >rizes the hospital's governing authority or its representa- procedures to determine compliance with these require- for generation of municipal power. Notwithstanding the contract entered into by a municipality for the purchase 3tion of power from municipal power plants shall be gov- it from rehabilitation facilities. Nothing in this section pro- adopting aresolution, rule, regulation, or ordinance that on > and sets aside for awarding to rehabilitation facilities as 36 a percentage of the value of its anticipated total procure- , including construction, 8nd which uses either a negotiated Sure in the awarding of a procurement contract under aset- this subdivision, provided that any award based on a nego- ~d by more than five percent the municipality's estimated rvices if they were purchased on the open market and not projects. The following definitions apply to this subdi- :ion measure" means a training program or facility alteration consumption or operating costs and includes: wilding structure and systems within the building; ~.d doors, caulking or weatherstripping, multiglazed windows or heat reflective glazed and coated window and door. sys- eductions in glass area, and other window and door system energy consumption; control systems; g, or air conditioning system modifications or replacements; odifications of lighting fixtures to increase the energy effi- ~ -io ~ 471.345 MiJNICIPAL RIGHTS, POWERS, DITTIES 1182 i ciency of the lighting system without increasing the overall illumination of a facility, f unless an increase in illumination is;necessary to conform to the applicable state or local building code for the lighting system after the proposed modifications are made; (6) energy recovery systems; (7) cogeneration systems that produce steam or forms of energy such as heat, as well as electricity, for use primarily within a building or complex of buildings; (8) energy conservation measures that provide long-term operating cost reduc- tions. (b) "Guaranteed energy savings contract" means a contract for the evaluation and recommendations ofenergy conservation measures, and for one or more energy conser- vation measures. The contract must provide that all payments, except obligations on termination of the contract before its expiration, are to be made over time, but not to exceed ten years from the date of final installation, and the savings are guaranteed to the extent necessary to make payments for the systems.. (c) "Qualified provider" means a person or business experienced in the design, implementation, and installation of energy conservation measures. A qualified pro- vider to whom the contract is awarded shall give a sufficient bond to the municipality ~ for its faithful performance. ~ Notwithstanding any law to the contrary, a municipality may enter into a guaran- teed energy savings contract with a qualified provider to significantly reduce energy or ~ operating costs. Before entering into a contract under this subdivision, the municipality shall pro- vide published notice of the meeting in which it proposes to award the contract, the names of the parties to the proposed contract, and the contract's purpose. Before installation of equipment, modification, or remodeling, the qualified pro- . vider shall first issue a report, summarizing estimates of all costs of installations, modi- fications, or remodeling, including costs of design, engineering, installation, maintenance, repairs, or debt service, and estimates of the amounts by which energy or operating costs will be reduced. A guaranteed energy savings contract that includes a written guarantee that savings j will meet or exceed the cost of energy conservation measures is not subject to competi- i tive bidding requirements of section 471.345 or other law or city charter. The contract is not subject to section 123.37. A municipality may enter into a guaranteed energy savings contract with a quali- fled provider if, after review of the report, it finds that the amount it would. spend on the energy conservation measures recommended in the report is not likely to exceed • the amount to be saved in energy and operation costs over ten years from the date of installation if the recommendations in the report were folloy+ed, and the qualified pro- vider provides a written guarantee that the energy ar operating cost savings•will meet or exceed the costs of the system. The guaranteed energy savings contract may provide for payments over a period of time, not to exceed ten years. A municipality may enter into an installment payment contract for the purchase and installation of energy conservation measures. The contract must provide for pay- ments of not less than one-tenth of the price to be paid within two years from the date of the first operation, and the remaining costs to be paid monthly, not to exceed aten- year term from the date of the first operation. Guaranteed energy savings contracts may extend beyond-the fiscal year in which they become effective. The municipality shall include in its annual appropriations mea- sure for each later fiscal year any amounts payable under guaranteed energy savings .contracts during the year. Failure of a municipality to make such an appropriation does not affect the validity of the guaranteed energy savings contract or the municipality's obligations under the contracts. Subd. 14. Damage awards. In any action brought challenging the validity of a municipal contract under this section, the court shall not award, as any part of its judg- ment, damages, or attorney's fees, but may award an unsuccessful bidder the costs of preparing an unsuccessful bid. History: 1969 c 934 s 1; 1973 c 123 art 5 s 7,• 1973 c 226 s 1,2; 1974 c SIO s 1; 1977 _. ~~I ~ 1183 c 182 s 1-3; 1980 c 462 s 4; 1 s 129; 1Sp1985 c 13 s 347,• 1 2s268; 1989c9s3; 1989c. c 549 s 1; 1992 c 380 s 4-6 471.346 PUBLICLY OWI` All motor vehicles owne town, school district, metro except for unmarked vehicle tions, shall have the name o of the vehicle in letters not le tification must be in a color which it is placed and must of which the vehicle is owne must not be on a removable placard must not be remove lease. History: 1994 c 635 art MtJNICIPAL RIGIi'IS, POWERS, DUTIES 471371 '83 c 42 s 1-3; 1983 c 301 s 211; 1984 c 413 s 1; 1985 c 172 '86 c 350 s 1,2; 1986 c 444; .1988 c 409 s 1; 1988 c 689 art 52 s 19,25; 1990 c 391 art 8 s Sl; i990 c 541 s 26,29; 1990 AND LEASED VEHICLES IDENTIFIED. or leased by a statutory or home rule charter city, county, ~litan or regional agency, or other political subdivision, used in general police and fire work and arson investiga- the political subdivision plainly displayed on both sides s than 2-1 /2 inches high and one-half inch wide. The iden- hat contrasts with the color of the part of the vehicle on ;main on and be clean and visible throughout the period or leased by the political subdivision. The identification late or placard except on leased vehicles but the plate or from a leased vehicle at any time during the term of the s 29 471.35 SPECIFICATIONS OF SUPPLIES OR EQUIPMENT. When any county, city, 'town, or school district calls for bids for the purchase of supplies or equipment; specifications shall not be so prepared as to exclude all but one type or kind but shall include competitive supplies and equipment. History: (1933-77) 1937 c 416 s 2; 1959 c 261 s 1; 1973 c -123 art S s 7; 1975 c 157 sl ~ 471.36 NONCOMPETITIVE SUPPLIES AND EQUIPMENT. The provisions of secti ns 471.35 to 471.37 shall not apply to noncompetitive types and kinds of supplies ~nd equipment. History: (1933-78) 1937 F 416 s 3; 1959 c 261 s 2 471.37 VIOLATIONS. The violation of any oft a provisions of sections 471.35 to 471.36 shall be a gross misdemeanor. History: (1933-79) 1937 ~ 416 s 4; 1959 c 261 s 3 471.371 CONTRACTS FO. Subdivision 1. [Repealer Subd. 2. Authorization a visions of any law or charte enter into a contract for the ment facilities may advertise under a single contract. Prio. cause to be prepared docume and any contract to be enter sional engineer in sufficient d~ tions, design capacity, ef~luer. wastewater treatment facilit~ work, equipment and materi formance standards for the c of the facility which must bE final acceptance of the facility der to furnish estimates of th conceptual plans and specifi contract award. ~ CONSTRUCTION OF TREATMENT WORKS. i,, 1991 c 212' s 4] 'design and construct contracts. Notwithstanding the pro- to the contrary, any municipality authorized by law to iesign and/or construction of water or wastewater treat- for sealed bids for the design and construction thereof to such advertisement the municipality shall prepare or lts which shall serve as a basis for the comparison of bids :d into. These documents shall be prepared by a profes- tail, including hydraulic flow and organic loading calcula- t limits, design life, and the treatment alternatives for the for the bidder to describe the probable cost, scope of ~ls of construction; and the documents shall include per- ~nstruction and performance standards for the operation met for specified conditions and time periods, prior to by the municipality. The documents shall require the bid- : annual operation and maintenance costs of the facility, rations and any other information deemed relevant for