Loading...
HomeMy WebLinkAboutResolution - 6558 - Purchasing Procedures - LP&L - Repeals Prior Conflicting Resolutions - 10/14/1999Resolution No. 6558 Oct. 14, 1999 Item No. 61 RESOLUTION WHEREAS, Senate Bill 7 enacted into law by the 76' Session of the Texas Legislature, with an effective date of September 1, 1999, amends Chapter 252 of the Local Government Code to exempt from the requirements of such Chapter expenditures made by a municipally owned electric utility for any purchases made by the municipally owned electric utility in accordance with procurement procedures adopted by a resolution of its governing body that sets out the public purpose to be achieved by those procedures; WHEREAS, the City of Lubbock, Texas, a home -rule municipal corporation in the State of Texas, owns and operates a municipal electric utility, that being Lubbock Power & Light; WHEREAS, the City Council desires to adopt this Resolution establishing purchasing procedures for Lubbock Power & Light for the public purpose of protecting and enhancing the competitive position of Lubbock Power & Light; WHEREAS, the City Council further finds that these purchasing procedures will benefit the public purpose, the citizens of Lubbock, and the customers and ratepayers of Lubbock Power & Light by providing for Lubbock Power & Light purchases to conform with all applicable laws while assuring that procurements are both beneficial and cost-effective for Lubbock Power & Light and its customers and fair and equitable to suppliers; and WHEREAS, the City Council deems it to be in the best interest of the citizens of the City of Lubbock to adopt by resolution purchasing procedures applicable to purchases by Lubbock Power & Light; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK: SECTION 1. THAT all purchases by Lubbock Power & Light of equipment, supplies, materials, services or any other items shall be made in accordance with City of Lubbock Purchasing Procedures 3511-455, attached hereto and made a part hereof for all intents and purposes. SECTION 2. THAT any prior resolutions or parts of resolutions in conflict with this Resolution are hereby repealed to the extent of any conflict. Passed by the City Council this 14th day of October, 1999. WI ST ,M ATT ST: I h AS TO CONTENT: Managing Director Electric Utilities" APPROVED AS TO FORM: Richard K. Casner Natural Resources Attorney RKC:cp Cityatt/Richard/SenateBi117-LP&L.Res October 5, 1999 Resolution No. 6558 Oct. 14, 1999 PROCEDURE NO.: 3511-455 Pae 1 of 4 Item Nol Title: PURCHASING PROCEDURES: LUBBOCK POWER & LIGHT Issue Date: October 14, 1999 1. PUBLIC PURPOSE 1.1 To provide procurement procedures for the public purpose of maintaining at all times, and under all conditions, a continuous supply of goods and services necessary to support research development, production and sales schedules In an effort to permit the taxpayer municipally owned electric utility to compete for customers who choose their electricity supplier in a competitive market. 2. SCOPE 2.1 These procedures only apply to expenditures by the City of Lubbock for Lubbock Power & Light (LP&L). 2.2 Expenditures using these procedures are exempt from Local Government Code Chapter 252. These procedures do not exempt the City of Lubbock or LP&L from any other applicable statute, charter provision, or ordinance. 2.3 Procurement of professional services is governed by the Professional Services Procurement Act and will not be affected by these procedures. 3. GENERAL 3.1 The City Manager, or his/her designee, is authorized to approve and execute routine contracts for goods and services involving an expenditure or receipt of $100,000 or less, or such other amount as may be specified hereafter by applicable provisions of state law, on standard City contract forms or in a form approved by the City Attorney. 3.2 The City of Lubbock Purchasing Manager is granted the authority and responsibility for the procurement of all materials, equipment, supplies and services necessary to support LP&L. Within this authority, the Purchasing Manager may delegate to his/her designee the responsibility for the performance of procurement duties. 3.3 All purchases of equipment, supplies, materials, and services shall be made in a manner that: (1) conforms with the substance of all applicable state procurement laws, the City Charter, all applicable City Ordinances, and these procedures; (2) is the most beneficial and cost-effective for LP&L and its customers; and (3) is fair and equitable to suppliers and service providers. 4. COMPETITIVE BIDS & PROPOSALS 4.1 The City of Lubbock Purchasing Manager, or his/her designee, will determine the type of solicitation to be used in a procurement, taking into account both the fundamental requirements of fairness in selecting parties to contract with LP&L as well as the competitive needs expressed by LP&L. Normally, an Invitation to Bid (ITB) will be used for standard commodity purchases and a Request for Proposals (RFP) will be used for procurement of services and technical equipment, including but not limited to equipment that is related to the generation, transmission, distribution, or metering of electricity. RFP's may be used for procurements that meet the requirements of critical business need as set forth in Section 10 below. 4.2 A vendor selection shall be initiated upon receipt of an approved and authorized requisition and Procurement Documents Submittal Form/Insurance Checklist from the LP&L using department along with a copy ready set of specifications. Complete information should be provided including, but not limited to, quantity, description, delivery requirement, special conditions, drawings, specifications, date information required, etc. Bid requests should indicate if replies are to conform to a certain format to remove all known variables. 4.3 Verbal quotations may be obtained for purchases of standard or non-complex material for expenditures up to $2,500. Prices are to be recorded on a quotation sheet that will serve as backup documentation after the order is placed. 4.4 Written quotations must be obtained for expenditures exceeding $2,500 or under the following conditions: • All capital equipment purchases. ■ Non-standard conditions, requirements, instructions etc. • Any occasion where more permanent documentation is advisable. Written quotations should be typed using, whenever possible, the Invitation to Bid forms. 4.5 When purchasing materials and/or services requiring written quotations, prices are to be solicited from three or more vendors. in the case of proprietary items, more than one price is often not possible and should be so noted on the requisition. PROCEDURE NO.: 3511-455 Pae 2 of 4 4.6 Quotations will be solicited only from vendors who are qualified or can be qualified to meet all requirements. Maintenance of an Approved Vendor List is advisable, but not mandatory. Examination of the financial condition of a company, its ability to perform, and facilities should be part of the criteria for an acceptable vendor in the opinion of LP&L and the Purchasing Department. 4.7 Quotations shall not be solicited from, nor any order placed with, a company that: ■ Is owned, controlled or actively influenced by any LP&L employee or immediate relative of said employee. ■ Employs in a management, consulting or sales capacity any person who is an LP&L employee. ■ Employs in any capacity an LP&L employee who is in a position to influence the selection of, or conduct business with, such supplier. Any problems of interpretation should be referred to the Purchasing Manager. 4.8 As a general rule, any solicitation estimated to be in excess of a total of $25,000 will be advertised for a minimum of two weeks in a Lubbock newspaper of general circulation, on the Internet, and in such other publications as determined necessary to reach a wide and diverse number of potential bidders or proposers. However, if the Purchasing Manager determines there is a competitive need, a solicitation may be advertised for a lesser period of time or in a different fashion. 4.9 The general business practice will be to require that all written responses to solicitations be submitted as sealed responses (either bids or proposals). However, this requirement may be waived at the discretion of the Purchasing Manager, if there is a business need to permit non -sealed responses (such as electronic, faxed, or telephone responses). 5. EVALUATION 5.1 Once bids or proposals are received, they must be evaluated by LP&L to determine which vendor will be given the order or contract. If the products offered by each of the vendors are of equal quality, if each vendor promised the same delivery date and if there are no other considerations, the order would go to the low bidder. However, all these factors are seldom equal and many orders are, therefore in the best interest of the citizens of the City, placed with other than the low bidder. No set formula can be devised that can be applied to all products, for all orders. The quality and delivery requirements will vary for different products and for different uses. The delivery requirements may vary for different orders as well. For these reasons, the act of selecting the bid or proposal, which best suits the need of LP&L is one that requires judgment and experience. 5.2 After all quotations have been received and examined for completeness, a summary sheet is to be prepared by noting all the pertinent data and discrepancies. Determination of the low bidder and award of the order will be made only after all aspects including preference of the requisitioner have been considered. The information gathered will be kept with a copy of the purchase order as backup documentation. In cases of quotations for estimating purposes, a copy of each quotation is to be sent to the requisitioner along with the quotation summary sheet. 5.3 Weighing the Importance of Delivery, Quality and Price 5.3.1 In many cases the relative importance of delivery, quality and price have already been established and documented on a prior order. In such cases the available information should be reviewed to establish that it is still current and relevant to the procurement at hand. 5.3.2 if the information Is current and relevant, use it as a basis for award. 5.3.3 if the information is not current but is relevant, then update the information and use it as a basis for award. 5.3.4 If the information is not relevant to the procurement, then perform a weighted -point evaluation: • Establish a point -count range for each factor that is important to the procurement, such as adherence to delivery schedule, action on delays, facilities to accomplish, financial strength, quality of work, bidder's previous record of performance and service, conformance to specifications, cost breakdown, etc. ■ Establish a relative weight value for each of the factors in relationship to its individual importance to the procurement as a whole. For example, if there are only two factors to be considered and they are of equal importance, their relative weight value is 50% each. • Evaluate each vendor's bid, quotation or proposal and assign a point count to it for each factor being considered. PROCEDURE NO.: 3511-455 Page 3 of 4 ■ Multiply the vendor's individual factor point counts by the appropriate weighting factor and add the results to establish the vendor's weighed -point total. • Use the results of the weighted -point evaluation in conjunction with other available information to make the award. 6. AWARD POLICY 6.1 The city reserves the right to reject any and all bids, waive informalities and to contract as the best interests of LP&L may require. 7. CONTRACT MODIFICATIONS 7.1 The City Manager, or his/her designee, is authorized to approve routine contract change orders involving an increase or decrease of $100,000 or less, or such other amount as may be specified hereafter by applicable provisions of state law. B. STATE CONTRACTS & INTERLOCAL COOPERATIVE PURCHASING 8.1 Whenever found to be to LP&L's advantage, the Purchasing Department or LP&L using departments may place orders using State contracts. See the following Web sites for ordering instructions: General Services Commission (GSC) - httg://www.gsc.state.tx.us/searchtermcontract.htmi GSC Federal Surplus Property - htt :/�asc.state.tx.us/sur Ip us/fsphome.htmi Qualified Information Services Vendor - http://www.gsc.state.tx.us/stl2urch/gisv.html#cop 8.2 Cooperative purchasing is one of the ways that local governments can save time and money in their purchasing programs. Cooperatives use Internet -based technologies to create a source for product and awarded contract information. Internet Web sites allow employees to access all the information needed to make confident buying decisions and streamline the purchasing process. Orders may be placed directly by LP&L departments. See the following Web sites for ordering instructions: TIBH Industries - htto:I/www.adwizards.com/tibh/catindx.htm Texas Local Government Statewide Purchasing Cooperative - http://www.buyboard.com Texas Cooperative Purchasing Network - http://esc4coop.home.texas.net Texas Correctional Industries - htto://www.tdcj,state.tx.ustcontent/tci/tci%20homeoage.htm Houston -Galveston Area Council - htto://www.hgac.cog.tx.us/intro/introc000.htmi All items and catalogs posted on these Web sites have been competitively bid and awarded by the cooperatives based on Texas statutes. 8.3 The City of Lubbock Manager of Information Technology must approve purchases of computer systems, computer hardware, computer software, or computer peripherals supported by the City of Lubbock Information Technology Department. 9. CONFIDENTIALITY 9.1 It is recognized that most of the transactions relating to purchasing for LP&L are of a confidential nature, especially with regard to our vendors and our competitors, and there are instances when LP&L's cost of certain goods and services is a competitive matter. 9.2 It is considered unethical as well as damaging to LP&L's competitive position to allow LP&L proprietary information about one vendor's quotation to pass to another vendor. There are other less direct methods that should be considered. Overheard phone calls, documents on desks during vendor interviews, and conversations between employees within hearing of vendors in other offices are some examples. An awareness of this sort of situation should be created so that it may be avoided. 9.3 Passage of pricing information from an employee of LP&L to an employee of a competitor shall be scrupulously avoided. 9.4 All files within LP&L and the Purchasing Department are to be maintained in an up-to-date and confidential manner. Access to these files and any other purchasing documentation shall be restricted to those authorized by the Purchasing Manager and LP&L. 9.5 A non-exclusive list of examples of information that are considered competitive, confidential or proprietary include: 0 Pricing and cost data