Item H4.pdf
ACTION SHEET ITEM FROM FINANCE COMMITTEE MEETING OF 01/02/18 FOR CITY COUNCIL MEETING OF 01/10/18 ISSUE: Request for an Ordinance Amending Section 11-4 to Increase the Contract u) Approval and Budget Adjustment Amount the City Manager is Authorized to Approve; Adopting the State of New Mexico Procurement Code as the Purchasing Manual for the City of Santa Fe; and Adopting Additional Exemptions from the Procurement Code. (Councilor Lindell) (Marcos Martinez)
Committee Review: Public Utilities Committee City Council (request to publish) City Council (public hearing) Fiscal Impact:
12/06/17 12/13/17 1/10/18
None
FINANCE COMMITTEE ACTION:
Approve as discussion item. FUNDING SOURCE: SPECIAL CONDITIONS OR AMENDMENTS
STAFF FOLLOW-UP:
VOTE COUNCILOR VILLARREAL
COUNCILOR IVES COUNCILOR LINDELL COUNCILOR HARRIS
FOR
AGAINST
ABSTAIN
X Absent
X X
CHAIRPERSON DOMINGUEZ 4-13-17
1
ACTION SHEET PUBLIC UTILITES COMMITTEE MEETING OF 12/6/17 ISSUE N0.19 Request for approval of Bill No. 2018-_ _ . An ordinance amending Section 11-4 to increase the contract approval and budget adjustment amount the City Manager is authorized to approve; adopting the State of New Mexico Procurement Code as the purchasing manual for the City of Santa Fe; and adopting additional exemptions from the Procurement Code. (Councilor Lindell) (Marcos Martinez) Public Utilities Committee - 12/6/2017 Public Works Committee - 12/11/2017 City Council (Request to Publish)- 12/13/2017 Finance Committee - 1/2/2018 City Council (Public Hearing) - 1/10/2018
PUBLIC UTILITES COMMITTEE ACTION: Approved to forward to 12/13/2017 City Council with recommended changes. SPECIAL CONDITIONS OR AMENDMENTS: Marcos Martinez will draft an amendment with the recommended changes. STAFF FOLLOW UP:
VOTE: COUNCILOR RIVERA, CHAIR
FOR X
COUNCILOR MAESTAS
X
COUNCILOR TRUJILLO
Excused
COUNCILOR LINDELL
X
COUNCILOR VILLARREAL
X
AGAINST
ABSTAIN
2
City of Santa Fe, New Mexico LEGISLATIVE SUMMARY Bill No. 2017-40 Procurement Code Update SPONSOR(S):
Councilor Lindell
SUMMARY:
The proposed bill increases the contract approval and budget adjustment authority of the city manager; adopts the state procurement code as the purchasing manual, and adopts additional exemptions from the procurement code.
PREPARED BY:
.T esse
Guillen, Legislative Liaison
FISCAL IMPACT: No
DATE:
November 3, 2017
ATTACHMENTS:
Amendment Bill FIR
3
""========,==__J
CITY OF SANTA FE, NEW MEXICO PROPOSED AMENDMENT(S) TO BILL NO. 2017-40 Procurement Code Adoption Mayor and Members of the City Council: I propose the following amendment(s) to Bill No. 2017-40:
1.
On page 5, line 7 insert the following new subsection: "F. Competitive sealed proposals valued in excess of one million dollars
($1,000,000.00). ( 1) If the bid or proposal includes to subcontractors who are also resident businesses, the public body shall deem a bid or proposal submitted by a resident business to be six percent (6%) lower than the bid actually submitted, if and only if at least fifty percent (50%) of the subcontracted services go to subcontractors who are resident businesses. If a non-resident business hires resident business subcontractors, (2) the public body shall deem the bid or proposal to be three percent (3%) percent lower than the bid actually submitted, if and only if at least fifty percent (50%) of the subcontracted services go to subcontractors who are resident businesses." 2.
Reletter the following subsections accordingly.
Respectfully submitted,
Joseph M. Maestas, Councilor
ADOPTED: - - - - - - - - NOT ADOPTED: - - - - - - DATE:
Yolanda Y. Vigil, City Clerk
4
1
CITY OF SANTA FE, NEW MEXICO
2
BILL NO. 2017-40
3
INTRODUCED BY:
4 Councilor Signe I. Lindell
5 6
7
8 9
10
AN ORDINANCE
11
AMENDING SECTION 11-4 TO INCREASE THE CONTRACT APPROVAL AND
12
BUDGET ADJUSTMENT AMOUNT THE CITY MANAGER IS AUTHORIZED TO
13
APPROVE; ADOPTING THE STATE OF NEW MEXICO PROCUREMENT CODE AS
14
THE PURCHASING MANUAL FOR THE CITY OF SANTA FE; AND ADOPTING
15
ADDITIONAL EXEMPTIONS FROM THE PROCUREMENT CODE.
16 17
BE IT ORDAINED BY THE GOVERNING BODY OF THE CITY OF SANT A FE:
18
Section 1.
19
amended to read:
Section 11-4 SFCC 1987 (being Ord. #2002-25 (as amended)) is
20
11-4
21
When budget adjustments are needed during the fiscal year, the following procedures
22 23
BUDGET ADJUSTMENTS.
shall apply: A.
The finance director has the authority to approve budget increases or decreases in
24
revenue or transfers-in or in expenditures, expenses or transfers-out, that reflect increases or
25
decreases in the budget up to and including five thousand dollars ($5,000.).
1
5
1
B.
The city manager has the authority to approve budget increases or decreases in
2
revenue or transfers-in or in expenditures, expenses or transfers-out, that reflect increases or
3
decreases in the budget from five thousand dollars and one cent ($5,000.01) up to and including
4
[fifty] sixty thousand dollars ([$50,000.]$60,000.). C.
5
The governing body shall approve budget increases or decreases in revenue or
6
transfers-in or in expenditures, expenses or transfers-out, that reflect increases or decreases in the
7
budget that are over [fifty] sixty thousand dollars ([$50,000.]$60,000.). D.
8 9
included by fund in a quarterly budget resolution approved by the governing body.
10 11
E.
14
Budget adjustment requests will conform to the rules and regulations adopted by
the local government division of the department of finance and administration.
12 13
Budget adjustments approved by the city manager and the governing body shall be
F.
For budgets associated with grants and grant agreements, the following shall
apply: (1)
The city manager may approve grant applications, awards, grant match
15
requirements, and agreements from five thousand dollars and one cent ($5,000.01) up to
16
and including [fifty] sixty thousand dollars ([$50,000.]$60,000).
17
(2)
The
city
manager
may
approve
budget
revenue
and
related
18
expenditure/expense increases (including budget adjustments or decreases, as applicable),
19
for grants provided that all of the following conditions are met: (a)
20 21
The governing body has already approved the grant application
including the recommended match (if applicable); and
22
(b)
The final grant award does not significantly differ from the grant
23
application in the amount, match, requirements, or other requirements on the part
24
of the city; and
25
(3)
Any city department receiving a grant shall submit a copy of the final
2
6
1
award agreement and documentation for the grant to the finance department for financial
2
tracking, repotiing and auditing purposes.
3
Section 2.
4
amended to read:
5
11-13
6
A.
Section 11-13 SFCC 1987 (being Ord. #1991-1 (as amended)) is
ADOPTION OF CITY'S [~] PROCUREMENT CODE. [The city of Santa Fe 2012 Purchasing Manual ("Purchasing Manual") is hereby
7
adopted by reference and incorporated as fully as set out herein and shall serve as the city of
8
Santa Fe Procurement Code. Copies of the 2012 Purchasing Manual including all amendments
9
are on file at the city of Santa Fe clerk's office and the office of the city of Santa Fe procurement
10
officer.] The city of Santa Fe hereby adopts the state of New Mexico Procurement Code(§§ 13-1-
11
28 through 13-1-199 NMSA 1978) as the city of Santa Fe Procurement Code ("City Procurement
12
Code"). Pursuant to its home-rule authority, and the city charter, the city may adopt rules specific
13
to the city, which depart from state law. Any departures from the state law shall be adopted by
14
ordinance.
15
B.
16
adopted, in addition to the following exemptions:
17 18
Exemptions permitted by§§ 13-1-98 through 13-1-98.2 NMSA 1978 are hereby
(1)
purchases of publicly provided utilities including but not limited to: gas.
electricity, water, telecommunications, and cable television;
19
(2)
bond attorneys, if approved by the city council as pati of the
20
underwriting team involved in the issuance, sale and delivery of public securities for city bonds or
21
city-issued bonds; and
22 23
(3)
C.
legal services for advice, consultation, and representation of the city.
The city manager's approval for contracts shall be consistent with the statutory
24
"Small Purchases" amount currently set at $60,000, excluding applicable state and local gross
25
receipts taxes, as defined by NMSA 1978, § 13-1-125(2013 ), as it may be amended. The city
3
7
1
manager's approval authority shall increase or decrease if and when the state changes the
2
statutory amount for "small purchases".
3
4 5
6
D.
The purchasing officer shall be the "Chief Procurement Officer of the City" as
defined by NMSA 1978, § 13-1-38.1(2013). E.
Local Preferences.
Notwithstanding, NMSA 1978, § 13-1-21(2016), the city
shall apply the following definitions and preferences:
7
1)
"resident business" means a business that has a valid resident business
8
certificate issued by the taxation and revenue department pursuant to Section 13-1-22, and which
9
shows that the resident business resides within the Santa Fe municipal limits.
10
2)
When the city makes a purchase using a formal bid process, the public
11
body shall deem a bid submitted by a resident business to be 3% percent lower than the bid
12
actually submitted. In addition, if the bid includes subcontractors who are also resident
13
businesses, the public body shall deem a bid submitted by a resident business with resident
14
business subcontractors to be 6% lower than the bid actually submitted. If a non-resident business
15
hires all resident business subcontractors, the public body shall deem the bid to be 3% percent
16
lower than the bid actually submitted.
17
3)
When the city makes a purchase using a formal request for proposals
18
process, not including contracts awarded on a point-based system, the city shall award an
19
additional:
20
(a)
21
evaluating the proposals to a resident business; and
22
(b)
23
24 25
three percent of the total weight of all the factors used in
three percent of the total weight of all the factors used
111
evaluating the proposals to a business with all resident business subcontractors.
4)
When the city makes a purchase using a formal request for proposals
process, and the contract is awarded based on a point-based system, the city shall award
4
8
1
additional points equivalent to:
2
(1)
three percent of the total possible points to a resident business;
(2)
three percent of the total possible points to a business with all
3
4 5
resident business subcontractors.
5)
6 7 8
9
F.
City employees shall endeavor to procure local goods and services that qualify as
"small purchases" as defined by NMSA 1978, § 13-1-125. The Purchasing Manual may be amended as follows:
F.
10 11
(I)
The procurement officer, finance and budget director or any member of
the governing body may propose amendments to the finance committee;
12 13
The maximum available local preference shall be 6%.
(2)
The finance committee shall make its recommendation to the governing
(3)
The governing body shall approve, modify or disapprove the proposed
body;
14 15
amendments.
16
G.
At the beginning of each fiscal year, if amendments are made, the Purchasing
17
Manual shall be re-published with the publication date clearly designated, and all amendments
18
shall be incorporated therein.
19 20
APPROVED AS TO FORM:
21 22 23
. BRENNAN, CITY ATTORNEY
24 25
M!Legislation/Bills 2017/Procurement Code Adoption
5
9
FIRNo.
3CQl
City of Santa Fe Fiscal Impact Report (FIR) This Fiscal Impact Report (FIR) shall be completed for each proposed bill or resolution as to its direct impact upon the City's operating budget and is intended for use by any of the standing committees of and the Governing Body of the City of Santa Fe. Bills or resolutions with no fiscal impact still require a completed FIR. Bills or resolutions with a fiscal impact must be reviewed by the Finance Committee. Bills or resolutions without a fiscal impact generally do not require review by the Finance Committee unless the subject of the bill or resolution is financial in nature. Section A.
General Information
(Check) Bill: Resolution: _ _ _ __ (A single FIR may be used for related bills and/or resolutions) Short Title(s): AN ORDINANCE AMENDING SECTION 11-4 TO INCREASE THE CONTRACT APPROVAL AND BUDGET ADJUSTMENT AMOUNT THE CITY MANAGER IS AUTHORIZED TO APPROVE; ADOPTING THE STATE OF NEW MEXICO PROCUREMENT CODE AS THE PURCHASING MANUAL FOR THE CITY OF SANTA FE; AND ADOPTING ADDITIONAL EXEMPTIONS FROM THE PROCUREMENT CODE. Sponsor(s): Councilor Lindell Reviewing Depaitment(s): "---F=in=a=n=ce=/-"'C"--A=O"'-------------------------------Persons Completing FIR: "---="=--"-======"-='=-'-"="'-- Date: 10/25/17
Reviewed by City Attorney:
Phone: 955-6171/955-6502
~__...___,_------+,..,,.__--{j{tlA.-___Date
{
Reviewed by Finance Director: -,,c.==-----------'-----_,_~_,._~_ _ _ _ _ _ _ Date: //-
~/rJ 3 · /1
Section B. Summary Briefly explain the purpose and major provisions of the bill/resolution: This bill would increase the approval authority of the city manager from $50k to $60k, reducing the need for certain items to go through the committee and council process. This bill also adopts the state of New Mexico procurement code with exemptions for utilities, bond attorneys and legal services, and establishes local preferences for resident businesses.
Section C. Fiscal Impact Note: Financial information on this FIR does not directly translate into a City of Santa Fe budget increase. For a budget increase, the following are required: a. The item must be on the agenda at the Finance Committee and City Council as a "Request for Approval of a City of Santa Fe Budget Increase" with a definitive funding source (could be same item and same time as bill/resolution) b. Detailed budget information must be attached as to fund, business units, and line item, amounts, and explanations (similar to annual requests for budget) c. Detailed personnel forms must be attached as to range, salary, and benefit allocation and signed by Human Resource Department for each new position(s) requested (prorated for period to be employed by fiscal year)* I. Projected Expenditures: a. Indicate Fiscal Year(s) affected - usually current fiscal year and following fiscal year (i.e., FY 03/04 and FY 04/05) "A" if current budget and level of staffing will absorb the costs b. Indicate: "N" if new, additional, or increased budget or staffing will be required "R" -- if recrnTing annual costs c. Indicate:
Finance Director: _ _ __
10
"NR" if one-time, non-recurring costs, such as start-up, contract or equipment costs d. Attach additional projection schedules if two years does not adequately project revenue and cost patterns e. Costs may be netted or shown as an offset if some cost savings are projected (explain in Section 3 Narrative) _ _ _X~-- Check here if no fiscal impact Column#:
2
3
"A" Costs Absorbed or"N" New Budget Required
4 "R" Costs Recurring or"NR" Nonrecurring
5 FY - - -
Expenditure Classification
FY - - -
Personnel*
$
$
Fringe**
$
$
Capital Outlay
$
$
Land/ Building
$
$
Professional Services
$
$
All Other Operating Costs
$
$
Total:
$
$
6
7
"A" Costs Absorbed or"N" New Budget Required
"R" Costs Recurring or"NR" Nonrecurring
8
Fund Affected
* Any indication that additional staffing would be required must be reviewed and approved in advance by the City Manager by attached memo before release of FIR to committees. **For fringe benefits contact the Finance Dept.
2. Revenue Sources: a. To indicate new revenues and/or b. Required for costs for which new expenditure budget is proposed above in item 1.
2
Column#: Type of Revenue
FY
$
3 "R" Costs Recurring or"NR" Nonrecurring
4 FY - - -
5 "R" Costs Recurring or "NR" Nonrecurring
6
Fund Affected
$ $
Total:
$
$
$
$
2
Form adopted: 01/12/05; revised 8/24/05; revised 4/17/08
11
3. Expenditure/Revenue Narrative:
Explain revenue source(s). Include revenue calculations, grant(s) available, anticipated date of receipt of revenues/grants, etc. Explain expenditures, grant match(s), justify personnel increase(s), detail capital and operating uses, etc. (Attach supplemental page, if necessary.) None.
Section D.
General Narrative
1. Conflicts: Does this proposed bill/resolution duplicate/conflict with/companion to/relate to any City code, approved ordinance or resolution, other adopted policies or proposed legislation? Include details of city adopted laws/ordinance/resolutions and dates. Summarize the relationships, conflicts or overlaps.
The proposed Bill would replace the City's purchasing manual, while preserving the City's authority to depart from the State law when it is in the best judgment of the City to do so. 2. Consequences of Not Enacting This Bill/Resolution:
Are there consequences of not enacting this bill/resolution? Ifso, describe. The City will have to continue to develop and modify the purchasing manual, which duplicates the state law in most areas and creates potential ambiguities in others. Adoption of the state's purchasing code by reference ensures that when the state changes the law the City receives those changes automatically. Not adopting the state code, requires the City to adopt each change by resolution or ordinance separately. 3. Technical Issues:
Are there incorrect citations of law, drafting errors or other problems? Are there any amendments that should be considered? Are there any other alternatives which should be considered? If so, describe. None identified. 4. Community Impact:
Briefly describe the major positive or negative effects the Bill/Resolution might have on the community including, but not limited to, businesses, neighborhoods, families, children and youth, social service providers and other institutions such as schools, churches, etc. This bill will align the City's procurement code with that of the State, streamlining the procurement process for the City. When the State changes its procurement code, the City will similarly adopt the same changes by reference.
3 Form adopted: 01/12/05; revised 8/24/05; revised 4/17/08
12
Committee Review: Public Utilities Committee City Council (request to publish) City Council (public hearing) Fiscal Impact:
12/06/17 12/13/17 1/10/18
None
FINANCE COMMITTEE ACTION:
Approve as discussion item. FUNDING SOURCE: SPECIAL CONDITIONS OR AMENDMENTS
STAFF FOLLOW-UP:
VOTE COUNCILOR VILLARREAL
COUNCILOR IVES COUNCILOR LINDELL COUNCILOR HARRIS
FOR
AGAINST
ABSTAIN
X Absent
X X
CHAIRPERSON DOMINGUEZ 4-13-17
1
ACTION SHEET PUBLIC UTILITES COMMITTEE MEETING OF 12/6/17 ISSUE N0.19 Request for approval of Bill No. 2018-_ _ . An ordinance amending Section 11-4 to increase the contract approval and budget adjustment amount the City Manager is authorized to approve; adopting the State of New Mexico Procurement Code as the purchasing manual for the City of Santa Fe; and adopting additional exemptions from the Procurement Code. (Councilor Lindell) (Marcos Martinez) Public Utilities Committee - 12/6/2017 Public Works Committee - 12/11/2017 City Council (Request to Publish)- 12/13/2017 Finance Committee - 1/2/2018 City Council (Public Hearing) - 1/10/2018
PUBLIC UTILITES COMMITTEE ACTION: Approved to forward to 12/13/2017 City Council with recommended changes. SPECIAL CONDITIONS OR AMENDMENTS: Marcos Martinez will draft an amendment with the recommended changes. STAFF FOLLOW UP:
VOTE: COUNCILOR RIVERA, CHAIR
FOR X
COUNCILOR MAESTAS
X
COUNCILOR TRUJILLO
Excused
COUNCILOR LINDELL
X
COUNCILOR VILLARREAL
X
AGAINST
ABSTAIN
2
City of Santa Fe, New Mexico LEGISLATIVE SUMMARY Bill No. 2017-40 Procurement Code Update SPONSOR(S):
Councilor Lindell
SUMMARY:
The proposed bill increases the contract approval and budget adjustment authority of the city manager; adopts the state procurement code as the purchasing manual, and adopts additional exemptions from the procurement code.
PREPARED BY:
.T esse
Guillen, Legislative Liaison
FISCAL IMPACT: No
DATE:
November 3, 2017
ATTACHMENTS:
Amendment Bill FIR
3
""========,==__J
CITY OF SANTA FE, NEW MEXICO PROPOSED AMENDMENT(S) TO BILL NO. 2017-40 Procurement Code Adoption Mayor and Members of the City Council: I propose the following amendment(s) to Bill No. 2017-40:
1.
On page 5, line 7 insert the following new subsection: "F. Competitive sealed proposals valued in excess of one million dollars
($1,000,000.00). ( 1) If the bid or proposal includes to subcontractors who are also resident businesses, the public body shall deem a bid or proposal submitted by a resident business to be six percent (6%) lower than the bid actually submitted, if and only if at least fifty percent (50%) of the subcontracted services go to subcontractors who are resident businesses. If a non-resident business hires resident business subcontractors, (2) the public body shall deem the bid or proposal to be three percent (3%) percent lower than the bid actually submitted, if and only if at least fifty percent (50%) of the subcontracted services go to subcontractors who are resident businesses." 2.
Reletter the following subsections accordingly.
Respectfully submitted,
Joseph M. Maestas, Councilor
ADOPTED: - - - - - - - - NOT ADOPTED: - - - - - - DATE:
Yolanda Y. Vigil, City Clerk
4
1
CITY OF SANTA FE, NEW MEXICO
2
BILL NO. 2017-40
3
INTRODUCED BY:
4 Councilor Signe I. Lindell
5 6
7
8 9
10
AN ORDINANCE
11
AMENDING SECTION 11-4 TO INCREASE THE CONTRACT APPROVAL AND
12
BUDGET ADJUSTMENT AMOUNT THE CITY MANAGER IS AUTHORIZED TO
13
APPROVE; ADOPTING THE STATE OF NEW MEXICO PROCUREMENT CODE AS
14
THE PURCHASING MANUAL FOR THE CITY OF SANTA FE; AND ADOPTING
15
ADDITIONAL EXEMPTIONS FROM THE PROCUREMENT CODE.
16 17
BE IT ORDAINED BY THE GOVERNING BODY OF THE CITY OF SANT A FE:
18
Section 1.
19
amended to read:
Section 11-4 SFCC 1987 (being Ord. #2002-25 (as amended)) is
20
11-4
21
When budget adjustments are needed during the fiscal year, the following procedures
22 23
BUDGET ADJUSTMENTS.
shall apply: A.
The finance director has the authority to approve budget increases or decreases in
24
revenue or transfers-in or in expenditures, expenses or transfers-out, that reflect increases or
25
decreases in the budget up to and including five thousand dollars ($5,000.).
1
5
1
B.
The city manager has the authority to approve budget increases or decreases in
2
revenue or transfers-in or in expenditures, expenses or transfers-out, that reflect increases or
3
decreases in the budget from five thousand dollars and one cent ($5,000.01) up to and including
4
[fifty] sixty thousand dollars ([$50,000.]$60,000.). C.
5
The governing body shall approve budget increases or decreases in revenue or
6
transfers-in or in expenditures, expenses or transfers-out, that reflect increases or decreases in the
7
budget that are over [fifty] sixty thousand dollars ([$50,000.]$60,000.). D.
8 9
included by fund in a quarterly budget resolution approved by the governing body.
10 11
E.
14
Budget adjustment requests will conform to the rules and regulations adopted by
the local government division of the department of finance and administration.
12 13
Budget adjustments approved by the city manager and the governing body shall be
F.
For budgets associated with grants and grant agreements, the following shall
apply: (1)
The city manager may approve grant applications, awards, grant match
15
requirements, and agreements from five thousand dollars and one cent ($5,000.01) up to
16
and including [fifty] sixty thousand dollars ([$50,000.]$60,000).
17
(2)
The
city
manager
may
approve
budget
revenue
and
related
18
expenditure/expense increases (including budget adjustments or decreases, as applicable),
19
for grants provided that all of the following conditions are met: (a)
20 21
The governing body has already approved the grant application
including the recommended match (if applicable); and
22
(b)
The final grant award does not significantly differ from the grant
23
application in the amount, match, requirements, or other requirements on the part
24
of the city; and
25
(3)
Any city department receiving a grant shall submit a copy of the final
2
6
1
award agreement and documentation for the grant to the finance department for financial
2
tracking, repotiing and auditing purposes.
3
Section 2.
4
amended to read:
5
11-13
6
A.
Section 11-13 SFCC 1987 (being Ord. #1991-1 (as amended)) is
ADOPTION OF CITY'S [~] PROCUREMENT CODE. [The city of Santa Fe 2012 Purchasing Manual ("Purchasing Manual") is hereby
7
adopted by reference and incorporated as fully as set out herein and shall serve as the city of
8
Santa Fe Procurement Code. Copies of the 2012 Purchasing Manual including all amendments
9
are on file at the city of Santa Fe clerk's office and the office of the city of Santa Fe procurement
10
officer.] The city of Santa Fe hereby adopts the state of New Mexico Procurement Code(§§ 13-1-
11
28 through 13-1-199 NMSA 1978) as the city of Santa Fe Procurement Code ("City Procurement
12
Code"). Pursuant to its home-rule authority, and the city charter, the city may adopt rules specific
13
to the city, which depart from state law. Any departures from the state law shall be adopted by
14
ordinance.
15
B.
16
adopted, in addition to the following exemptions:
17 18
Exemptions permitted by§§ 13-1-98 through 13-1-98.2 NMSA 1978 are hereby
(1)
purchases of publicly provided utilities including but not limited to: gas.
electricity, water, telecommunications, and cable television;
19
(2)
bond attorneys, if approved by the city council as pati of the
20
underwriting team involved in the issuance, sale and delivery of public securities for city bonds or
21
city-issued bonds; and
22 23
(3)
C.
legal services for advice, consultation, and representation of the city.
The city manager's approval for contracts shall be consistent with the statutory
24
"Small Purchases" amount currently set at $60,000, excluding applicable state and local gross
25
receipts taxes, as defined by NMSA 1978, § 13-1-125(2013 ), as it may be amended. The city
3
7
1
manager's approval authority shall increase or decrease if and when the state changes the
2
statutory amount for "small purchases".
3
4 5
6
D.
The purchasing officer shall be the "Chief Procurement Officer of the City" as
defined by NMSA 1978, § 13-1-38.1(2013). E.
Local Preferences.
Notwithstanding, NMSA 1978, § 13-1-21(2016), the city
shall apply the following definitions and preferences:
7
1)
"resident business" means a business that has a valid resident business
8
certificate issued by the taxation and revenue department pursuant to Section 13-1-22, and which
9
shows that the resident business resides within the Santa Fe municipal limits.
10
2)
When the city makes a purchase using a formal bid process, the public
11
body shall deem a bid submitted by a resident business to be 3% percent lower than the bid
12
actually submitted. In addition, if the bid includes subcontractors who are also resident
13
businesses, the public body shall deem a bid submitted by a resident business with resident
14
business subcontractors to be 6% lower than the bid actually submitted. If a non-resident business
15
hires all resident business subcontractors, the public body shall deem the bid to be 3% percent
16
lower than the bid actually submitted.
17
3)
When the city makes a purchase using a formal request for proposals
18
process, not including contracts awarded on a point-based system, the city shall award an
19
additional:
20
(a)
21
evaluating the proposals to a resident business; and
22
(b)
23
24 25
three percent of the total weight of all the factors used in
three percent of the total weight of all the factors used
111
evaluating the proposals to a business with all resident business subcontractors.
4)
When the city makes a purchase using a formal request for proposals
process, and the contract is awarded based on a point-based system, the city shall award
4
8
1
additional points equivalent to:
2
(1)
three percent of the total possible points to a resident business;
(2)
three percent of the total possible points to a business with all
3
4 5
resident business subcontractors.
5)
6 7 8
9
F.
City employees shall endeavor to procure local goods and services that qualify as
"small purchases" as defined by NMSA 1978, § 13-1-125. The Purchasing Manual may be amended as follows:
F.
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(I)
The procurement officer, finance and budget director or any member of
the governing body may propose amendments to the finance committee;
12 13
The maximum available local preference shall be 6%.
(2)
The finance committee shall make its recommendation to the governing
(3)
The governing body shall approve, modify or disapprove the proposed
body;
14 15
amendments.
16
G.
At the beginning of each fiscal year, if amendments are made, the Purchasing
17
Manual shall be re-published with the publication date clearly designated, and all amendments
18
shall be incorporated therein.
19 20
APPROVED AS TO FORM:
21 22 23
. BRENNAN, CITY ATTORNEY
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M!Legislation/Bills 2017/Procurement Code Adoption
5
9
FIRNo.
3CQl
City of Santa Fe Fiscal Impact Report (FIR) This Fiscal Impact Report (FIR) shall be completed for each proposed bill or resolution as to its direct impact upon the City's operating budget and is intended for use by any of the standing committees of and the Governing Body of the City of Santa Fe. Bills or resolutions with no fiscal impact still require a completed FIR. Bills or resolutions with a fiscal impact must be reviewed by the Finance Committee. Bills or resolutions without a fiscal impact generally do not require review by the Finance Committee unless the subject of the bill or resolution is financial in nature. Section A.
General Information
(Check) Bill: Resolution: _ _ _ __ (A single FIR may be used for related bills and/or resolutions) Short Title(s): AN ORDINANCE AMENDING SECTION 11-4 TO INCREASE THE CONTRACT APPROVAL AND BUDGET ADJUSTMENT AMOUNT THE CITY MANAGER IS AUTHORIZED TO APPROVE; ADOPTING THE STATE OF NEW MEXICO PROCUREMENT CODE AS THE PURCHASING MANUAL FOR THE CITY OF SANTA FE; AND ADOPTING ADDITIONAL EXEMPTIONS FROM THE PROCUREMENT CODE. Sponsor(s): Councilor Lindell Reviewing Depaitment(s): "---F=in=a=n=ce=/-"'C"--A=O"'-------------------------------Persons Completing FIR: "---="=--"-======"-='=-'-"="'-- Date: 10/25/17
Reviewed by City Attorney:
Phone: 955-6171/955-6502
~__...___,_------+,..,,.__--{j{tlA.-___Date
{
Reviewed by Finance Director: -,,c.==-----------'-----_,_~_,._~_ _ _ _ _ _ _ Date: //-
~/rJ 3 · /1
Section B. Summary Briefly explain the purpose and major provisions of the bill/resolution: This bill would increase the approval authority of the city manager from $50k to $60k, reducing the need for certain items to go through the committee and council process. This bill also adopts the state of New Mexico procurement code with exemptions for utilities, bond attorneys and legal services, and establishes local preferences for resident businesses.
Section C. Fiscal Impact Note: Financial information on this FIR does not directly translate into a City of Santa Fe budget increase. For a budget increase, the following are required: a. The item must be on the agenda at the Finance Committee and City Council as a "Request for Approval of a City of Santa Fe Budget Increase" with a definitive funding source (could be same item and same time as bill/resolution) b. Detailed budget information must be attached as to fund, business units, and line item, amounts, and explanations (similar to annual requests for budget) c. Detailed personnel forms must be attached as to range, salary, and benefit allocation and signed by Human Resource Department for each new position(s) requested (prorated for period to be employed by fiscal year)* I. Projected Expenditures: a. Indicate Fiscal Year(s) affected - usually current fiscal year and following fiscal year (i.e., FY 03/04 and FY 04/05) "A" if current budget and level of staffing will absorb the costs b. Indicate: "N" if new, additional, or increased budget or staffing will be required "R" -- if recrnTing annual costs c. Indicate:
Finance Director: _ _ __
10
"NR" if one-time, non-recurring costs, such as start-up, contract or equipment costs d. Attach additional projection schedules if two years does not adequately project revenue and cost patterns e. Costs may be netted or shown as an offset if some cost savings are projected (explain in Section 3 Narrative) _ _ _X~-- Check here if no fiscal impact Column#:
2
3
"A" Costs Absorbed or"N" New Budget Required
4 "R" Costs Recurring or"NR" Nonrecurring
5 FY - - -
Expenditure Classification
FY - - -
Personnel*
$
$
Fringe**
$
$
Capital Outlay
$
$
Land/ Building
$
$
Professional Services
$
$
All Other Operating Costs
$
$
Total:
$
$
6
7
"A" Costs Absorbed or"N" New Budget Required
"R" Costs Recurring or"NR" Nonrecurring
8
Fund Affected
* Any indication that additional staffing would be required must be reviewed and approved in advance by the City Manager by attached memo before release of FIR to committees. **For fringe benefits contact the Finance Dept.
2. Revenue Sources: a. To indicate new revenues and/or b. Required for costs for which new expenditure budget is proposed above in item 1.
2
Column#: Type of Revenue
FY
$
3 "R" Costs Recurring or"NR" Nonrecurring
4 FY - - -
5 "R" Costs Recurring or "NR" Nonrecurring
6
Fund Affected
$ $
Total:
$
$
$
$
2
Form adopted: 01/12/05; revised 8/24/05; revised 4/17/08
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3. Expenditure/Revenue Narrative:
Explain revenue source(s). Include revenue calculations, grant(s) available, anticipated date of receipt of revenues/grants, etc. Explain expenditures, grant match(s), justify personnel increase(s), detail capital and operating uses, etc. (Attach supplemental page, if necessary.) None.
Section D.
General Narrative
1. Conflicts: Does this proposed bill/resolution duplicate/conflict with/companion to/relate to any City code, approved ordinance or resolution, other adopted policies or proposed legislation? Include details of city adopted laws/ordinance/resolutions and dates. Summarize the relationships, conflicts or overlaps.
The proposed Bill would replace the City's purchasing manual, while preserving the City's authority to depart from the State law when it is in the best judgment of the City to do so. 2. Consequences of Not Enacting This Bill/Resolution:
Are there consequences of not enacting this bill/resolution? Ifso, describe. The City will have to continue to develop and modify the purchasing manual, which duplicates the state law in most areas and creates potential ambiguities in others. Adoption of the state's purchasing code by reference ensures that when the state changes the law the City receives those changes automatically. Not adopting the state code, requires the City to adopt each change by resolution or ordinance separately. 3. Technical Issues:
Are there incorrect citations of law, drafting errors or other problems? Are there any amendments that should be considered? Are there any other alternatives which should be considered? If so, describe. None identified. 4. Community Impact:
Briefly describe the major positive or negative effects the Bill/Resolution might have on the community including, but not limited to, businesses, neighborhoods, families, children and youth, social service providers and other institutions such as schools, churches, etc. This bill will align the City's procurement code with that of the State, streamlining the procurement process for the City. When the State changes its procurement code, the City will similarly adopt the same changes by reference.
3 Form adopted: 01/12/05; revised 8/24/05; revised 4/17/08
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