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24 - Procurement Policy for Construction Contracts Over $50,000pdfItem No. 24 TO: City Council FROM: Grayson Path, City Manager SUBJECT: Resolution approving a procurement policy for construction contracts over $50,000.00 DATE: December 14, 2020 BACKGROUND: At a prior meeting, Council Members expressed a desire to craft a policy on procuring construction contracts on projects involving expenditures exceeding $50,000.00. Such policies would need to follow statutory guidelines while giving the city the maximum flexibility in selecting contractors. Myself and city attorney Ms. Harris were tasked with brining such a policy to Council for review, discussion, and possible discussion. STATUS OF ISSUE: The attached resolution and policy incorporates the requirements of Tex. Gov. Code Chapter 2269, which controls for governmental procurement of contracts for the construction, alteration, and renovation public facilities and public works. Chapter 252 of the Local Gov. Code also has competitive bidding components, but to the extent that it conflicts with Chapter 2269, Chapter 2269 controls. It is not possible to completely harmonize those two chapters, but the best way to do so is to view 2269 as the overarching framework for various methods of procurement, including a competitive bidding method (lowest responsible bidder), and to view Chapter 252 as providing the various procedural requirements, such as when notice must be given and how and when bids or proposals must be opened. The policy closely tracks the statutory language in the pertinent sections in Chapter 2269. You will see that Chapter 2269 allows a good deal more flexibility than does Chapter 252, including setting forth criteria that can be used to evaluate bidders, even bidders under the straight competitive bidding method so that a governmental entity may have criteria to distinguish responsible bidders from not -responsible bidders. BUDGET: No direct impact. This is simply a policy to give the city the greatest possible flexibility while still following relevant procurement statutes. OPTIONS: 1. Approve the resolution, procurement policy, safety policy and appendices thereto as is. 2. Provide direction to staff regarding changes council wishes to make to the above. RECOMMENDATION: Move to approve the resolution regarding procurement of construction contracts over the amount of $50,000.00 and the attached policies and documents. RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PARIS, TEXAS APPROVING THE ADOPTION OF A POLICY FOR CONTRACTING FOR AND DELIVERY OF CONSTRUCTION PROJECTS AND SETTING OUT CRITERIA FOR DETERMINING IF A PROSPECTIVE BIDDER IS A RESPONSIBLE BIDDER. WHEREAS, the City of Paris, Texas is a Home Rule Municipality ("City"); and WHEREAS, Chapter 252.021, Texas Local Government Code, states that "before a municipality may enter into a contract that requires an expenditure of more than $50,000.00 from one or more municipal funds, the municipality must:" ... "comply with a method described by Chapter 2269, Texas Government Code"; and WHEREAS, Chapter 2269, Texas Government Code, governs the procedures for the contracting and delivery of construction projects for municipalities; and WHEREAS, Chapter 2269 provides several methods by which a city may procure and contract for such services; and WHEREAS, Chapter 2269, Subchapter C, sets forth the competitive bidding method whereby a governmental entity may contract for the construction, alteration, rehabilitation, or repair of a "facility", defined as an improvement to real property, by awarding the contract to the lowest responsible bidder; and WHEREAS, Section 2269.055 sets forth criteria that a governmental entity may consider in awarding a contract under Chapter 2269, including but not limited to the safety record of the offeror; the offeror's experience and reputation; and any other relevant factor specifically listed in requests for bids, proposals, or qualifications; and WHEREAS, the City Council of the City of Paris, Texas, desires to implement Texas Government Code Chapter 2269 and to adopt a Safety Record Policy and Bid Specification Criteria to review the performance of all prospective bidders in determining the most responsible bid under Chapter 2269, Subchapter C as well as in awarding contracts pursuant to the other methods outlined and allowable under said Chapter; and WHEREAS, the City of Paris will include in the specifications on various bid projects a safety application and safety survey related to the safety record of prospective bidders and will set out the criteria by which the bids, proposals, or qualifications will be judged; and WHEREAS, the results of the information received will be used by Staff to prepare a recommendations for City Council as to the awarding of such contracts for public works projects as set forth in Chapter 2269; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PARIS, TEXAS, THAT: SECTION 1. The above recitals are found to be true and correct and incorporated herein for all purposes. SECTION 2. The City Council of the City of Paris, Texas hereby adopts the policy attached hereto as Exhibit A and incorporated herein by reference regarding Contracting and Delivery Procedures for Construction Projects, including Bid, Proposal, and Qualifications Specification Criteria which includes factors that may be used in determining whether a prospective bidder is a responsible bidder on the basis of safety and other relevant information. SECTION 3. The City Council of the City of Paris, Texas, hereby authorizes the establishment of a Safety Record Policy, which includes an Appendix "A" Safety Record Application and an Appendix "B" Safety Record Survey, a copy of which is attached to this Resolution as Exhibit B and incorporated herein by reference. SECTION 4. The Safety Record Policy and Bid Specification Criteria will be provided to all prospective bidders as part of the contractors bid specifications packet. SECTION 5. This Resolution shall be in full force and effect from and after its passage. PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF PARIS, TEXAS, ON THE 14TH DAY OF DECEMBER, 2020. Steven J. Clifford, M.D., Mayor ATTEST: Janice Ellis, City Clerk APPROVED AS TO FORM: Stephanie H. Harris, City Attorney Exhibit A CITY OF PARIS POLICY ON CONTRACTING AND DELIVERY PROCEDURES FOR CONSTRUCTION PROJECTS Purpose of Policy: The purpose of this policy is to implement Chapter 2269 of the Texas Government Code, "Contracting and Delivery Procedures for Construction Projects" for all construction projects involving expenditures over the amount of $50,000.00. Statement of Policy: It is the policy of the City of Paris, Texas that the City's procurement of contracts for construction projects of public works will be governed by Chapter 2269 of the Texas Government Code, and the City may from time to time avail itself of each of the methods set forth in said Chapter 2269 as it may from time to time be amended. Such methods include: Subchapter C: Competitive Bidding Method Subchapter D: Competitive Sealed Proposal Method Subchapter E: Construction Manager -Agent Method Subchapter F: Construction Manager -At -Risk Method Subchapter G: Building Using Design -Build Method Subchapter I: Job Order Contracts Method City of Paris Bid, Proposal, and Qualifications Selection Criteria: As authorized by Section 2269.055, Texas Government Code, the City of Paris may use the following criteria to evaluate bids, proposals, and qualifications prior to awarding any construction contract under this policy, including but not limited to using the criteria to determine whether a bidder under Chapter 2269 Subchapter C, "Competitive Bidding Method," is a responsible bidder: 1. The price; 2. The offeror's experience and reputation; 3. The quality of the offeror's goods or services; 4. The impact on the ability of the governmental entity to comply with rules relating to historically underutilized businesses; S. The offeror's safety record; 6. The offeror's proposed personnel; 7. Whether the offeror financial capability is appropriate to the size and scope of the project; and/or 8. Any other relevant factor specifically listed in the request for bids, proposals, or qualifications. Lowest Responsible Bidder: If a bid is submitted in which there is a material failure to comply with <®» »§o n Criteria, s©» bid shall be rejected and the contract shall be awarded to the next lowest responsible bid conformin:§,<«¥2®® « » Criteria. Methods other than Competitive Bidding: For all methods other than Competitive set forth in Texas Government Code Chapter 2269. Copy of Policy and Selection Criter}721¥± provi¥«¥t+72 offerors: The City shall include a copy of this Policy and the Safety Record Policy in all requests for d»»«« ?. and qualifications made under this Policy. APPENDIX "B" SAFETY RECORD SURVEY Name of Bidder: Sent To: Name: Address: Phone: Project: Please circle the number that best represents your rating of performance with regard to the above "Bidder". 1=Poor 2=Average 3=Good 4=Excellent 1. Did the bidder provide quality, availability and adaptability of the supplies, materials, equipment or contractual services as required? 1 2 3 4 2. Did the bidder perform the contract or provide services promptly, or within the time required, without delay or interference? 1 2 3 4 3. Did the bidder show character, responsibility, integrity, good reputation and experience? 1 2 3 4 Company Name: Authorized Signature: Date: APPENDIX "A" SAFETY RECORD APPLICATION Bidder's Name: A. List the last five (5) projects on which you were the successful bidder, Provide a name and address for each project. B. List any lawsuits; administrative or arbitration proceedings to which you have been a party in the last three (3) years. Give the style of case, number and names and addresses of the other parties. C. Provide three (3) credit references, one of which must be a financial institution. D. Provide the name and address of each Workers' Compensation insurance carrier(s) for the last five (5) years. E. List claims made against you by your employees or third parties for personal injury, death or property damage on projects listed in Item A. EXHIBIT B CITY OF PARIS SAFETY RECORD POLICY The City of Paris, Texas shall determine the safety record of prospective bidders through the administration of a Safety Record Policy. DEFINITION The Safety Record Policy is an evaluation unit which provides previous performance information on prospective bidders. An application and information sheet providing the criteria shall be included in bid specifications depending upon the size of the contract of the services to be rendered. This document will be required when submitting a formal bid (See Appendix "A"). CRITERIA, The performance measures for the safety record are in accordance with Section §252.0435 of the Texas Local Government Code which authorizes the governing body to adopt written definition and criteria for accurately determining the safety record of a prospective bidder. The criteria include the following: A. The las five (5) projects on which the bidder was the "successful bidder". B. Any lawsuits, proceedings or arbitration filed against the bidder. C. Credit references including a financial institution. D. Workers' Compensation insurance carriers. E. Claims of personal injury, death or property damages on any project(s). EYA UATION The Survey in Appendix "B" shall be sent to the contractors references to provide information on the safety record of the prospective bidder. The results will be tabulated and included in the information provided to the City Council when determining the most responsible bidder.