POSTONED INDEFINITALY
DENALI
BOROUGH, ALASKA
ORDINANCE
NO. 91-03
PROCEDURES
FOR THE DENALI BOROUGH.
BE IT
ENACTED BY THE ASSEMBLY OF THE DENALI BOROUGH:
Sections:
1. Competitive
bidding required.
2. Purchase
generally.
3. Purchasing
agent.
4. Bid invitation.
5. Bid deposits.
6. Bid submittal
and opening.
7. Rejection of
bids.
8. Award of
contract.
9. Open market purchases.
10. Contractor bonding.
11. Professional services contracts.
12. Construction contracts ‑‑ letting.
13. Construction contracts ‑‑ administration.
14. Disbursements setoffs.
15. Local preference ‑‑ contractors.
16. Local preference ‑‑ subcontractors.
Section 1. Competitive bidding required.
A. All purchases of and contracts for supplies and contractual services shall, except as specifically provided in this chapter, be based whenever possible on competitive bids.
B. When competitive bids are not deemed to be
possible, a purchase or contract or supplies may be entered into if the
estimated cost of the supplies or contractual services is:
1. greater than $2,500 and the assembly by
resolution finds that competitive bids are impossible, reciting the reasons
therefore, and specifies how the purchase shall be made or the contract shall
be awarded; or,
2. not greater than $2,500 if the mayor
certifies in writing that competitive bids are impossible, reciting the reasons
therefore, and specifies how the purchase shall be made of the contract shall
be entered into.
Section 2. Purchase generally. All supplies and contractual services,
except as otherwise provided in this chapter, when the estimated cost thereof
exceeds $2,500 shall be purchased by formal, written contract from the lowest
responsible bidder as defined in Section after due notice
inviting proposals.
Section 3. Purchasing agent.
A. The mayor is the purchasing agent for the
borough. However, the mayor may
designate the clerk or other borough employee to be the borough purchasing
agent, subject to assembly approval by resolution.
B. There shall be a borough purchasing
agent. The purchasing agent shall make
all purchases of supplies, materials, equipment and contractual services needed
by the offices, departments and agencies of the borough government, in accordance
with the ordinances of the borough and such rules and regulations as may be
prescribed by the mayor and approved by the assembly.
C. The purchasing agent shall recommend joint
purchases with other units of government when the best interests of the borough
would be served.
Section 4. Bid invitation.
A. When competitive bidding is required, notice
inviting bids shall be published in a newspaper or newspapers of general
circulation within the state selected by the clerk. Invitation for bids shall be published at least once, at least
ten days prior to the last day set for the receipt of proposals. The invitation shall include information as
to where the necessary bid forms and additional information may be obtained.
B. The clerk may also solicit bids from all
responsible prospective suppliers who have indicated an interest in bidding on
borough contracts.
C. The clerk shall also advertise all pending
purchases by posting a notice on the public bulletin board of the borough
office.
Section 5. Bid deposits. When deemed necessary by the mayor, bid
deposits shall be prescribed in the invitation for bid. Unsuccessful bidders shall be entitled to a
return of surety where the mayor has required such. A successful bidder shall forfeit any surety required by the
mayor if the bidder fails or refuses to enter into a contract within ten (10)
days after the award.
Section 6. Bid submittal and opening.
A. When competitive bidding is required, bids
shall be submitted to the clerk and shall be identified as bids on the envelope. The clerk shall not accept submittal of bids
after the time stated in the invitation for the opening of bids.
B. Bids shall be opened in public at the time
and place stated in the invitation for bids.
C. A tabulation of all bids received shall be
posted for public inspection. A copy of
the tabulation shall be forwarded to the assembly for acceptance or rejection
of bid.
Section 7. Rejection of bids.
A. The assembly shall have the authority to
reject all bids, parts of bids, or all bids for any one or more supplies or
contractual services included in the proposed contract, when such rejection is
in the best interest of the borough.
B. The assembly may determine that rejection of
all bids is in the best interest of the assembly for reasons which include but
are not limited to the following:
1. inadequate, ambiguous, or otherwise
deficient specifications were cited in the invitation for bids;
2. the supplies or services are no longer
needed;
3. the invitation for bids did not provide for
consideration of all factors of cost to the assembly;
4. the bids received indicate that the
assembly's needs can be satisfied in a less expensive manner than that
contemplated by the invitation for bids;
5. all otherwise acceptable bids received are
at unreasonable prices;
6. the bids were not independently arrived at
in open competition, were collusive, or were submitted in bad faith; or
7. the bids received did not provide adequate
competition to assure reasonable prices.
C. If the assembly rejects all bids under this
section, it may later direct the clerk to issue an identical or similar
invitation for bids.
Section 8. Award of contract.
A. The assembly may award contracts within the
purview of this chapter.
B.
When competitive bidding is required, contracts shall be awarded, if at
all, to the lowest responsible bidder whose bid is responsive to the invitation
for bids.
C. In determining which bid is
"lowest," the assembly may, in its discretion, apply the local
contractor preference of Section .
D. In determining whether the lowest bidder is
"responsible," the assembly shall consider:
1. the ability, capacity and skill of the
bidder to perform the contract or provide the service required;
2. whether the bidder can perform the contract
or provide the service promptly or within the time specified, without delay or
interference;
3. the character, integrity, reputation,
judgment, experience and efficiency of the bidder and the quality of
performance of previous contracts or services;
4. the previous and existing compliance by the
bidder with laws and ordinances relating to the contract or service;
5. the sufficiency of the financial resources
and ability of the bidder to perform the contract or provide the service;
6. the quality, availability and adaptability
of the supplies or contractual services to the particular use required;
7. the ability of the bidder to provide future
maintenance and service for the use of the subject of the contract, number and
scope of conditions attached to the bid;
8. the standardization requirements; and,
9. the ability of the bidder to resolve the
assembly's concerns as to the bidder's responsibility prior to the time when
the contract must be executed.
E. For a bid to be "responsive," the
bid must be an offer to perform, without exception, the exact thing called for
in the invitation for bids, which will, upon acceptance, bind the bidder to
perform in accordance with all the terms and conditions of the invitation. The assembly may conclude that a bid is not
"responsive" if, for example:
1. The bidder has qualified or changed the
terms or conditions of the invitation to bid;
2. the bid is considered late under Section having been received after the time for opening;
3. the bid does not include bid or surety
bonds, plans, specifications, samples, or other items called for in the
invitation to bid; or
4. the bidder does not acknowledge receipt of
an amendment to the invitation.
F. The assembly may waive trivial or
inconsequential deficiencies in a bid.
G. An aggrieved bidder may, within five (5)
days after the opening of the bids, file an informal appeal pursuant to chapter
Section 9. Open market purchases. All purchases of supplies and contractual
services of less than $2,500 shall be made on the open market, without
observing the procedure prescribed in Sections through
Section 10. Contractor bonding. Contracts for construction, alteration or
repair of public buildings or public works, where the cost is in excess of one
hundred thousand dollars ($100,000) shall be awarded only after the contractor
has provided payment and performance bonds pursuant to AS 36.25.010(A).
Section 11. Professional services contracts.
A. A contract for engineering, architectural,
legal, medical or other professional services shall not be binding, and
effective until it has been approved by the assembly. Any such contract awarded by the assembly is deemed
approved. Any other such contract shall
be immediately submitted to the assembly for approval, which may be given by
motion.
B. Contracts in amounts exceeding one thousand
dollars ($1,000.00) for such services and other contractual services, which are
in their nature unique and not subject to competition, shall be awarded by the
assembly. All such contracts for
professional services, when deemed appropriate by the awarding authority, shall
be awarded after public notice and mail solicitation inviting proposals for the
furnishing of the required services.
The selection of professional assistance shall be based on competence,
skill and experience.
C. No contract shall be subdivided to avoid the
requirements of this section.
D. The borough shall not award a contract for
architectural, engineering, or land surveying services to:
1. an individual who is not registered under
A.S. 08.48 to perform the architectural, engineering, or land surveying
services required by the contract;
2. a partnership that is not qualified under
A.S. 08.48.251 to provide the architectural, engineering, or land surveying
services required by the contract; or
3. a corporation that is not authorized under
A.S. 08.48.241 to offer the architectural, engineering, or land surveying
services required by the contract.
Section 12. Construction contracts ‑‑
letting.
A. For the purposes of this section,
"contract" means and includes construction contracts. The term shall not include professional
services and other contractual services which are in their nature unique and
not subject to competition.
B. All contracts shall be based wherever
possible on competitive bids.
C. All contracts shall be awarded by formal,
written contract to the lowest responsible bidder whose bid is responsive to
the invitation for bids, as required by Section , after due notice inviting proposals following the
procedures established in Section . Each
construction contract shall provide:
1. that the work shall be performed in full
compliance with all applicable building and safety codes, including but not
limited to applicable portions of the National Electrical Code, the Uniform
Building Code, the Uniform Fire Code, and the Uniform Mechanical Code, or such
other, similar, codes as may be adopted from time to time by the Alaska
Department of Public Safety, Division of Fire Prevention or by the Borough;
2. that final payment on the contract shall not
be due until the work has been certified by a licensed inspector to have been
correctly performed in compliance with the contract and the codes referred to
in the preceding subsection; and
3. that final payment under the contract shall
not be deemed a waiver of any defects in the work.
D.
The assembly may not award a contract for the construction or repair of
any building or other borough facility to a contractor who has not provided
each of the following:
1. the contractor's full name and permanent
address, mailing address, and, if the contractor is not an individual, the
name, mailing address, and telephone number of a contact person;
2. a copy of the contractor's current
certificate of registration, issued pursuant to A.S. 08.18.031, provided,
however, that the assembly may tentatively award a contract to contractor to
whom a certificate of registration has not yet been issued if the contractor
provides a copy of the application filed pursuant to A.S. 08.18.021;
3. a copy of the current bond filed with the
State of Alaska as required by A.S. 08.18.071;
4. a copy of the information regarding public
liability and property damage insurance filed with the State of Alaska as
required by A.S. 08.18.101; and
5. a copy of the contractor's current State of
Alaska Business License, provided, however, that the assembly may tentatively
award a contract to contractor to whom a business license has not yet been
issued if the contractor provided a copy of the application filed pursuant to
A.S. 43.70.020.
E. Upon awarding a construction contract, the
clerk shall:
1. immediately notify the state Commissioner of
Labor of the amount of the contract, the effective date of the contract, the
identity of the contractor and all subcontractors, the site or sites of
construction and provide a project description; and
2. verify that the bonding requirements of A.S.
36.25 have been met and that the requirements of A.S. 08.18 have been met.
Section 13. Construction contracts ‑‑
Administration. All
contracts, as defined in Section shall be
administered by the mayor in accordance with the following provisions:
A. Any change required in the work shall be
made after receiving a written change order proposal from the contractor for
additions to or deductions from the original contract sum and the original
contract time for changes proposed.
B. Upon receipt of a change order proposal for
a change in the contract sum in an amount not exceeding one thousand dollars
($1,000.00) and after determination that the contractor's proposal is
reasonable, the clerk, at the direction of the mayor, may issue a written
change order. The aggregate sum of
change orders so authorized shall not exceed five percent (5%) of the original
contract sum or one thousand dollars ($1,000.00) whichever is greater.
C. When a proposed change order exceeds the
limits set forth in subsection B. of this section, the proposal, together with
recommendations of the mayor, shall be forwarded to the assembly. The assembly shall then determine whether
the proposal shall be accepted or rejected.
D. Whenever a change in the work is required
immediately upon the discovery of unforeseen conditions, the mayor shall have
the power to order such change. If the
change is otherwise subject to subsection C. of this section, a full report
shall be made to the assembly not later than the second regular meeting
following the change. The emergency
nature of such change order shall be determined by the mayor.
E. No partial payment for work completed shall be
made to a contractor without approval of the mayor of the quantities and values
submitted by the contractor. No
reduction in retained percentage not called for in the contract shall be made
without prior approval of the assembly.
Section 14. Disbursement setoffs.
A. Disbursements of monies to a person, firm or
corporation will be made only after the various receivable accounts of the
borough have been reviewed for outstanding balances owed. The disbursement will be reduced by setting
of the amount of indebtedness due to the borough from such person, firm or
corporation.
B. All contracts to which the borough is a
party which will or may involve the disbursement of borough funds shall contain
the following clause or its substantial equivalent:
Disbursement
of monies by the borough hereunder shall be subject to setoff pursuant to the
provisions of Section of the Code of Ordinances.
Such contracts include, but are not
limited to, oral contracts, employment contracts, construction contracts, and
purchasing contracts.
Section 15. Local preference ‑‑ contractors. The assembly may, at its discretion, direct
an award of a construction contract after competitive bidding to a responsible
bidder who has submitted a bid, who holds a borough business license, and who
maintains a business office within the borough, if that bid does not exceed the
lowest responsible bid by more than ten percent (10%).
Section 16. Local preference ‑‑
subcontractors.
A. The mayor shall, unless prohibited or
otherwise restricted by funding sources, for all contracts awarded under the
formal competitive bidding procedures, make incentive payments to a qualified
contractor consisting of a percentage of the cost of salary and benefits paid
by a qualified contractor directly or through his qualified subcontractors to
employees for personal services of labor who were directly employed on the
project for which the referenced contract applies.
B. In this section, "qualified
contractor" or "qualified subcontractor" means a person,
partnership, or corporation holding a borough business license on the date on
which the contract bids are solicited.
C. Incentive payments may be applied for at the
same time as periodic payments, if any, which are authorized under the
contract. The contractor shall submit
supporting documentation as required by the clerk.
D. The incentive payment shall be equal to:
1. Twelve percent (12%) of costs for qualified
contractor or subcontractors under one million dollars ($1,000,000.00);
2. Ten percent (10%) of costs for qualified
contractors or subcontractors between one million dollars and one cent ($1,000,000.01)
and five million dollars ($5,000,000.00);
3. Eight percent (8%) of costs for qualified
contractors or subcontractors between five million dollars and one cent ($5,000,000.01)
and ten million dollars ($10,000,000.00);
4. Six percent (6%) of costs for qualified
contractors or subcontractors between ten million dollars and one cent ($10,000,000.01)
and over.
DATE INTRODUCED: February 3, 1991
FIRST READING: February 3, 1991
PUBLIC HEARING: __________________
PASSED and APPROVED by the DENALI
BOROUGH ASSEMBLY this ______ day of_________________________, l9___.
____________________________
Mayor
ATTEST:
____________________________
Borough Clerk