2012-11-08 Work Session Kodiak Island Borough
Assembly Work Session
Thursday, November 8, 2012,
Immediately Following the Joint Work Session
Borough Conference Room
Work Sessions are informal meetings of the Assembly where Assembly members review the upcoming regular meeting agenda
packet and seek or receive information from staff. Although additional items not listed on the work session agenda are discussed
when introduced by the Mayor, Assembly, or staff, no formal action is taken at work sessions and items that require formal
Assembly action are placed on regular Assembly meeting agenda. Citizen's comments at work sessions are NOT considered part of
the official record. Citizen's comments intended for the "official record" should be made at a regular Assembly meeting.
CITIZENS' COMMENTS (Limited to Three Minutes per Speaker)
ITEMS FOR DISCUSSION
1. Professional Services Contract/Transparency Issues
MANAGER'S COMMENTS
CLERK'S COMMENTS
MAYOR'S COMMENTS
ASSEMBLY MEMBERS COMMENTS
Kodiak Island Borough Code Page 1/6
Chapter 3.30
CONTRACT, PURCHASE, SALE, AND TRANSFER PROCEDURES
Sections:
3.30.010 Contract, purchase and sale and transfer procedure.
3.30.020 Limitation on manager's authority.
3.30.030 Open market procedures.
3.30.040 Advertising for bids.
3.30.050 Processing of bids.
3.30.060 Local preference.
3.30.070 Exception to bidding requirements.
3.30.080 Lowest responsible bidder.
3.30.090 Requirements mandatory.
3.30.100 Change orders — Manager authority.
3.30.105 Circumvention of bidding requirements prohibited.
3.30.110 Competitive sealed proposals — Negotiated procurement.
3.30.115 Delinquency.
' For statutory provisions regarding public contracts, see AS Title 36.
3.30.010 Contract, purchase and sale and transfer procedure.
The manager may carry out any of the following:
A. Contract for, purchase, or issue purchase authorizations for all supplies,
materials, equipment, and services for the offices, departments, and agencies of the
borough;
B. Sell surplus, obsolete, or unusable personal property for the offices, department,
and agencies of the borough;
C. Transfer supplies, material, and equipment to or between the offices,
departments, and agencies of the borough; or
D. Contract for the construction, repair, or improvements of borough facilities. [Ord.
98 -03 §2, 1998; Ord. 76 -6 -0 §1, 1976. Formerly §3.16.010].
3.30.020 Limitation on manager's authority.
The manager may not make an acquisition, sale, transfer, or contract authorized by
KIBC 3.30.010 if the value of the property, service, or contract exceeds $25,000 without
first obtaining assembly approval with the exception of utility bills, which may be paid
without assembly approval. [Ord. 04 -02 §4, 2004; Ord. 2000 -04 §2, 2000; Ord. 98 -03
§2, 1998; Ord. 84 -61 -0 §10, 1984; Ord. 81 -20 -0, 1981; Ord. 76 -6 -0 §1, 1976. Formerly
§3.16.020].
3.30.030 Open market procedures.
A. Purchases, sales, or contracts authorized by KIBC 3.30.010 having an estimated
value in excess of $15,000 but less than $25,000 shall be made in the open market
without newspaper advertisement.
B. Market purchases, sales, and contracts for over $500.00 shall, whenever
possible, be based on at least two competitive bids and shall be awarded to the lowest
responsible bidder, or in the case of a sale, to the highest responsible bidder, except a
This page of the Kodiak Island Borough Code is current through Ordinance FY2012 -20, passed May 3, 2012.
Kodiak Island Borough Code Page 2/6
local preference for purchasing shall be allowed not to exceed 20 percent of the
purchase price for purchases of $15,000 or less and not to exceed 10 percent of the
purchase price for purchases of more than $15,000 but not more than $25,000.
C. The manager, or authorized designee, may solicit oral or written bids for open
market purchases or sales, and shall maintain a record of all bids received.
D. The sale of all surplus, obsolete, or unusable personal property shall be
advertised in a newspaper of general circulation published within the borough unless
authorized to the contrary by the assembly.
E. The purchase of utilities is exempt from this section. [Ord. 04 -02 §4, 2004; Ord.
2000 -04 §2, 2000; Ord. 98 -03 §2, 1998; Ord. 86 -49 -0 §2, 1986; Ord. 81 -20 -0, 1981;
Ord. 76 -6 -0 §1, 1976. Formerly §3.16.030].
3.30.040 Advertising for bids.
A. Purchases, sales, or contracts authorized by KIBC 3.30.010 having an estimated
value of more than $25,000 may be made only after a notice calling for bids is printed in
a newspaper of general circulation published within the borough once a week for not
less than three consecutive weeks prior to the date of the bid opening. The notice shall
contain a general description of the property, work, or service; state where the bid forms
and specifications may be obtained; specify the place for submission of bids and the
time by which they must be received.
B. The purchase or contract shall be awarded to the lowest responsible bidder, or in
the case of a sale to the highest responsible bidder.
C. Utilities are exempt from this section. [Ord. 04 -02 §4, 2004; Ord. 00 -04 §2, 2000;
Ord. 81 -20 -0, 1981; Ord. 76 -6 -0 §1, 1976. Formerly §3.16.040].
3.30.050 Processing of bids.
Notwithstanding other provisions of this chapter relating to the award after
competitive bid for purchases, sales, and contracts, the borough may:
A. Reject defective or nonresponsive bids;
B. Waive any irregularities in any and all bids;
C. Reject all bids;
D. Negotiate with two or more of the lowest bidders, if bid prices are in excess of the
money available or authorized, for a reduction in the scope, quality, or quantity of the
purchase, service, or contract; or
E. Readvertise for bids with or without making changes in the plans or specifications.
[Ord. 76 -6 -0 §1, 1976. Formerly §3.16.050].
3.30.060 Local preference.
The assembly may, in its discretion, direct an award of a contract for the purchase of
personal property or services after competitive bidding to a responsible bidder who
maintains a business office or store within the borough from which the property or
service would be provided, if that bid does not exceed the lowest responsible bid by
more than 10 percent. [Ord. 76 -6 -0 §1, 1976. Formerly §3.16.060].
This page of the Kodiak Island Borough Code is current through Ordinance FY2012 -20, passed May 3, 2012.
Kodiak Island Borough Code Page 3/6
3.30.070 Exception to bidding requirements.
The requirements of this chapter relating to solicitation of competitive bids and
award to the lowest responsible bidder shall not apply to:
A. Contracts for professional or unique services;
B. Contracts for property or services necessitated by an emergency, if the delays
required for compliance with the bidding requirements would jeopardize the public
health or welfare;
C. Contracts for audit and insurance services that may be bid at up to five -year
intervals;
D. Contracts with a municipality or other political subdivision to the extent authorized
by statute with the assembly holding a public hearing on contracts exceeding $100,000;
or
E. Contracts for street improvements involving donated services and materials when
the assembly has determined not to create an assessment district and has approved a
project. The following steps shall be taken before a proposed contract is submitted to
the assembly for approval:
1. An applicant shall first submit to the engineering and facilities department
director a proposal that fully complies with Chapters 4.45, 16.70, and 16.80 KIBC along
with a cost estimate that reasonably describes the value of the services and materials
included in the proposal as well as the procedure for addressing any change orders;
2. After the engineering and facilities department director accepts the proposal,
the applicant shall submit to the borough finance director proof of ability to comply with
Chapter 3.65 KIBC; and
3. The proposal shall be referred to the applicable road service area board for
review and recommendation to the assembly;
4. After the borough finance director approves the proposed bonding and a
recommendation has been received from any reviewing service area board, the
assembly shall hold a public hearing with notice to affected property owners as follows:
a. Publication in a newspaper of general circulation in the borough at least
once a week for two consecutive weeks prior to the public hearing;
b. Mailing at least 15 days before the public hearing to all record owners of
property with frontage on the street to be improved. "Record owners" means the person
or persons listed as the owner of the property on the current property tax records of the
assessor. The notice shall be mailed to the record owner at the address stated in the
assessor's tax records; and
c. Every notice of a public hearing required by this section shall state the
date, time, location, and purpose of the public hearing and shall describe the
improvement. The notice shall also state that, if the assembly approves the proposal, no
assessment district will be formed and the borough will not participate in the allocation
or collection of costs among the respective property owners.
5. After the public hearing, the assembly may approve the project, with or without
additional conditions. If the assembly approves the project, it shall authorize the
manager to execute the contract. [Ord. 04 -02 §4, 2004; Ord. 00 -02 §2, 2000; Ord.
87 -05 -0 §2, 1987; Ord. 84 -48 -0 §1, 1984; Ord. 76 -6 -0 §1, 1976. Formerly §3.16.070].
This page of the Kodiak Island Borough Code is current through Ordinance FY2012 -20, passed May 3, 2012.
Kodiak Island Borough Code Page 4/6
3.30.080 Lowest responsible bidder.
In determining the lowest responsible bidder, the assembly shall consider:
A. The bid price;
B. The ability, capacity and skill of the bidder to perform the contract within the time
specified;
C. The character, integrity, reputation, judgment, and experience of the bidder; and
D. The quality of performance of previous contracts. [Ord. 76 -6 -0 §1, 1976.
Formerly §3.16.080].
3.30.090 Requirements mandatory.
Except as provided in KIBC 3.30.110, a purchase, contract, or sale subject to the
provisions of this chapter shall not be valid, enforceable or binding upon the borough
unless the established requirements have been satisfied and the contract, purchase, or
sale approved by the assembly. [Ord. 82 -35 -0 §1, 1982; Ord. 76 -6 -0 §1, 1976.
Formerly §3.16.0901.
3.30.100 Change orders — Manager authority.
The manager, or designee, is authorized, without assembly approval, to enter into
change orders with respect to borough construction projects where the amount of
additional expenditure occasioned by the change order or orders does not, in the
aggregate, exceed $10,000. The manager, or designee, shall report monthly to the
assembly the nature and amount of such change orders. If the change order or orders
exceeds $10,000, it will require the signatures of:
A. The mayor and deputy presiding officer;
B. The mayor and one assembly member in the absence of the deputy presiding
officer;
C. The deputy presiding officer and one assembly member in the absence of the
mayor; or
D. Any two assembly members in the absence of the mayor and deputy presiding
officer. [Ord. FY2005 -07 §6, 2004; Ord. 99 -01 §3, 1999; Ord. 98 -03 §2, 1998; Ord.
87 -24 -0 §2, 1987; Ord. 84 -61 -0 §10, 1984; Ord. 81 -63 -0, 1981. Formerly §3.16.100].
3.30.105 Circumvention of bidding requirements prohibited.
No person shall subdivide an acquisition of supplies, materials, equipment, or
services into more than one purchase order, contract, or change order if the acquisition
of said items or services would normally, reasonably, and customarily be conducted
under a single purchase order, contract, or change order, and if the subdivision has the
effect of avoiding or circumventing the competitive bidding requirements, or the
limitations on the authority to make acquisitions or to award contracts or change orders
contained in this chapter. [Ord. 88 -11 -0 §2, 1988. Formerly §3.16.105].
3.30.110 Competitive sealed proposals — Negotiated procurement.
A. If the manager determines that use of competitive sealed bidding is not
practicable, the borough may procure supplies, services or construction by competitive
sealed proposals under this section.
This page of the Kodiak Island Borough Code is current through Ordinance FY2012 -20, passed May 3, 2012.
Kodiak Island Borough Code Page 5/6
B. The manager shall solicit competitive sealed proposals by issuing a request for
proposals. The request for proposals shall state, or incorporate by reference, all
specifications and contractual terms and conditions to which a proposal must respond
and shall state the factors to be considered in evaluating proposals and the relative
importance of those factors. Public notice of a request for proposals shall be given in
accordance with KIBC 3.30.040.
C. Sealed proposals shall be designated as such on an outer envelope and shall be
submitted by mail or in person at the place and no later than the time specified in the
request for proposals. Proposals not submitted at the place or within the time so
specified shall not be opened or considered.
D. Proposals shall be received at the time and place designated in the request for
proposals and shall be opened so as to avoid disclosing their contents to competing
proponents during the process of negotiation. Proposals and tabulations thereof shall be
open to public inspection only after the contract award.
E. In the manner provided in the request for proposals, the manager may negotiate
with those responsible proponents whose proposals are determined by the manager to
be reasonably responsive to the request for proposals. Negotiations shall be used to
clarify and assure full understanding of the requirements of the request for proposals.
The manager may permit proponents to revise their proposals after submission and
prior to award to obtain best and final offers. Proponents deemed eligible for
negotiations shall be treated equally regarding any opportunity to discuss and revise
proposals. In conducting negotiations or requesting revisions, neither the manager nor
any other borough director or employee shall disclose any information derived from
proposals of competing proponents.
F. Awards shall be made by written notice to the responsible proponent whose final
proposal is determined to be most advantageous to the borough. No criteria other than
those set forth in the request for proposals may be used in proposal evaluation. If the
manager determines that it is in the best interest of the borough to do so, the borough
may reject all proposals. [Ord. 98 -03 §2, 1998; Ord. 84 -61 -0 §10, 1984; Ord. 82 -35 -0
§2, 1982. Formerly §3.16.110].
3.30.115 Delinquency.
A. The borough shall not award a contract or purchase order to any person,
corporation, or other business entity who is delinquent in paying (1) any tax levied by
the borough; (2) any special assessment levied by the borough; (3) any charge for utility
or municipal waste services; or (4) any other borough fee due under the code, unless
the person, corporation, or other business entity cures the delinquency within 30 days
after the mailing of written notice of the delinquency. In the case of a closely held
business, this prohibition shall also apply to the delinquency of their legal principals or
officers. For purposes of this section, a payment shall be considered "delinquent" when
it is not made on or before the applicable deadline established by the Kodiak Island
Borough Code, or by written notice if the code does not establish a deadline, or, if the
code does not establish a deadline and a deadline is not established in a written notice,
within 60 days of the mailing of written notice that the payment is due.
B. The borough may terminate any contract or purchase order if the person,
corporation, or other business entity and, in the case of a closely held business, their
This page of the Kodiak Island Borough Code is current through Ordinance FY2012 -20, passed May 3, 2012.
Kodiak Island Borough Code Page 616
legal principals or officers, becomes delinquent in payment of any of the items listed in
subsection (A) of this section, unless the delinquency is cured within 30 days after
mailing of written notice as above.
C. The borough may deduct from any amount otherwise due the person,
corporation, or other business entity and, in the case of a closely held business, their
legal principals or officers under any contract or purchase order an amount equal to the
total of all such delinquent amounts that the contractor owes for (1) taxes levied by the
borough; (2) special assessments levied by the borough; (3) charges for borough utility
or municipal waste services; and (4) other borough fees due under the code.
D. Nothing in this section shall prevent any person, corporation, or other business
entity and, in the case of a closely held business, their legal principals or officers from
paying under protest any tax, special assessment, utility or municipal waste charge, or
other borough fee, or pursuing appropriate judicial or administrative action to contest or
recover any such tax, assessment, charge or fee.
E. For purposes of this section, the term "closely held business" shall mean a
corporation, limited liability company or other business entity which has less than five
unrelated (by blood or marriage) owners. [Ord. FY2006 -14 §2, 2006. Formerly
§3.16.115].
This page of the Kodiak Island Borough Code is current through Ordinance FY2012 -20, passed May 3, 2012.
KODIAK ISLAND BOROUGH
WORK SESSION
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