[Ord. of 1-12-1998(2)]
The purpose of this chapter is to increase public confidence in the purchasing system of the City, to insure the fair treatment of all vendors, contractors and other persons who seek to provide goods or services to the City, to maximize the purchasing value of public funds of the City, to foster broad-based competition within the free enterprise system and to promote uniformity of procurement policies and procedures among the various departments and offices within the City.
[Ord. of 1-12-1998(2)]
(a) 
All City contracts with nongovernmental vendors, contractors or professionals for the purchase or lease of goods or for the purchase of services, insurance or construction expected to exceed $30,000 shall be awarded after competitive sealed bidding or competitive negotiation in accordance with the procedures set forth in the Virginia Public Procurement Act (Code of Virginia, § 2.2-4300 et seq.).
(b) 
All City contracts with nongovernmental vendors, contractors or professional for the purchase or lease of goods or for the purchase of services, insurance or construction not expected to exceed $30,000 shall be awarded in accordance with the procedures set forth in Article II of this chapter.
(c) 
If the procurement of certain goods or services involve the expenditure of federal assistance or contract funds, the receipt of which is conditioned upon compliance with mandatory requirements in federal laws or regulations not in conformity with the Virginia Public Procurement Act, then the City may comply with such laws or regulations on the written determination of City Council that acceptance of the grant or contract funds under the applicable conditions is in the public interest.
(d) 
The City may also purchase or lease goods, including maintenance and service thereon, through federal or state contracts or through the purchase of surplus goods from state and federal governments and agencies.
(e) 
Pursuant to the Virginia Public Procurement Act, and as more fully set forth therein, the following contracts which are expected to exceed $30,000 may be excepted from the requirement for competitive sealed bidding or competitive negotiation:
(1) 
Contracts in which there has been a written determination that there is only one source practicably available for that which is to be procured.
(2) 
Contracts awarded in case of emergency on the written determination of the basis for the emergency and for the selection of the particular contractor; however, such procurement shall be made with such competition as is practicable under the circumstances.
(3) 
The purchase of goods, products or commodities from a public auction sale pursuant to a written determination made by City Council that such purchase is in the best interest of the public.
(4) 
The purchase of goods or services which are performed or produced by persons, or in schools or workshops under the supervision of the Virginia Department for the Visually Handicapped or which are performed or produced by nonprofit sheltered workshops or other nonprofit organizations which offer transitional or supported employment services serving the handicapped.
(5) 
Contracts for legal services (provided that the pertinent provisions of Code of Virginia, § 2.2-500 et seq., remain applicable) or expert witnesses and other services associated with litigation or regulatory proceedings.
(6) 
The extension of the term of an existing contract for services to allow completion of any work undertaken but not completed during the original term of the contract.
(7) 
The purchase of insurance through an association of which the City is a member if the association was formed and is maintained for the purpose of promoting the interest and welfare of and developing close relationships with similar public bodies, provided such association has procured the insurance by use of competitive principles and provided that the City has made a determination in advance after reasonable notice to the public and set forth in writing that competitive sealed bidding and competitive negotiation are not fiscally advantageous to the public. The writing shall document the basis for this determination.
(8) 
The wholesale purchase of electricity for resale to City utility customers.
[Ord. of 1-12-1998(2)]
All officers and employees of the City shall comply with the provisions of this chapter and any regulations or procedures adopted pursuant to this chapter in purchasing or contracting for any goods, services, insurance or construction. Any purchase or contract made contrary to the provisions of this chapter or any regulations or procedures adopted pursuant to this chapter shall be void, and any officer or employee of the City who authorized such purchase or contract is subject to disciplinary action and may be personally liable on the contract to the vendor or purchaser of the goods, services or construction involved.
[Ord. of 1-12-1998(2)]
No officer or employee of the City shall artificially divide contractual requirements to avoid any dollar limitations set forth herein or in the Virginia Public Procurement Act Code of Virginia, § 2.2-4300 et seq.
[Ord. of 1-12-1998(2)]
(a) 
The City Manager shall have full power and authority over procurement of goods and services required by the City in accordance with the provisions of this chapter and applicable state and federal law and to that end may:
(1) 
Promulgate rules, regulations, procedures and forms for implementing the provisions of this chapter;
(2) 
Delegate responsibility and duties to other City officers or employees consistent with the provisions of this chapter and any rules, regulations and procedures adopted hereunder; and
(3) 
Enter in cooperative procurement agreements with other public bodies on behalf of the City for the joint or cooperative procurement of goods, services, insurance or construction in order to increase efficiency, reduce administrative expenses and maximize the purchasing power of public funds.
(b) 
The Director of Finance is the purchasing agent for the City, acting under the supervision of the City Manager, and, as such, is primarily responsible for overseeing the procurement of goods, services, insurance and construction for City departments and offices.
[Ord. of 1-12-1998(2); amended by Ord. of 8-12-2002]
(a) 
A department head may execute contracts for goods, services or construction on behalf of the City which do not exceed $5,000 and which do not exceed the unencumbered balance available in the budgetary line of his or her department to which the expenditure is to be charged.
(b) 
The City Manager or the Director of Finance may execute contracts for goods, services, insurance and construction on behalf of the City which do not exceed the unencumbered balance available in the budgetary line to which the expenditure is to be charged. In the event that the amount of the contract exceeds the unencumbered balance available in the budgetary line to which the expenditure is to be charged, the contract must be approved by City Council, and the budget must be amended to designate the revenue source which will cover the expenditure.
[Ord. of 1-12-1998(2)]
Documentation of purchases made and contracts of procurement entered into by the City required to demonstrate compliance with the Virginia Public Procurement Act or with this chapter shall be retained in the offices of the Director of Finance. Such documentation shall be retained until the acquisition of goods is completed or the services have been rendered and for such further periods as are required by City or state procedures governing records retention.
[Ord. of 1-12-1998(2)]
If the City obtains a bid for goods, services, insurance or construction which exceeds available funds, the officer or employee soliciting the bid may negotiate with the lowest responsible, responsive bidder to obtain a contract price within available funds.
[Ord. of 1-12-1998(2); amended by Ord. of 8-14-2000]
(a) 
The Director of Finance may, for the convenience of the City, maintain a list of bidders containing names, addresses and phone numbers of prospective vendors, contractors, professionals, insurance agencies and other persons who may be available to offer goods, services or insurance to the City. Such list shall include, as well as can be ascertained, all such persons and businesses located in the City as well as offerors located elsewhere.
(b) 
The proposal, bid or offer of any person, which or who owes taxes, fees, service charges, penalties, electric or other bills to the City that are delinquent at the time of solicitation of proposals, bids or offers, shall not be accepted by the City unless such person agrees in writing in advance of such acceptance that any amount due the City may be deducted by the City in payment of such delinquency from the payment of the City for goods, services or insurance.
[Ord. of 1-12-1998(2)]
(a) 
Except in cases of emergency all bids or proposals for construction contracts in excess of $100,000 shall be accompanied by a bid bond from a surety company selected by the bidder, which is legally authorized to do business in Virginia, as a guarantee that if the contract is awarded to such bidder, the bidder will enter into the contract for the work mentioned in the bid. The amount of the bid shall be 5% of the amount bid. The City Manager may, in his discretion, require a 5% bid bond for contracts under $100,000.
(b) 
Such bid bonds shall be filed in the office of the Director of Finance.
(c) 
No forfeiture under a bid bond shall exceed the lesser of (i) the difference between the bid for which the bond was written and the next low bid or (ii) the face amount of the bid bond.
[Ord. of 1-12-1998(2)]
(a) 
Upon the award by the City of any construction contract exceeding $100,000 to any prime contractor, such contractor shall furnish to the City the following bonds:
(1) 
A performance bond in the sum of the contract amount conditioned upon the faithful performance of the contract in strict conformity with the plans, specifications and conditions of the contract.
(2) 
A payment bond in the sum of the contract amount. Such bond shall be for the protection of claimants who have and fulfill contracts to supply labor or materials to the prime contractor to whom the contract was awarded, or to any subcontractors, in the prosecution of the work provided for in such contract, and shall be conditioned upon for all such labor supplied or performed or materials furnished in the prosecution of the work. "Labor or materials" shall include public utility services and reasonable rental of equipment, but only for periods when the equipment rented is actually needed at the site.
(b) 
Each of such bonds shall be executed by one or more security companies selected by the contractor which are legally authorized to do business in Virginia.
(c) 
Bonds shall be made payable to the City.
(d) 
Each of the bonds shall be filed in the office of the Director of Finance.
(e) 
The City Manager, in his discretion, may require performance and payment bonds for construction contracts in the amount of $100,000 or less.
(f) 
Nothing in this section shall preclude the prime contractor from requiring each subcontractor to furnish a payment bond with surety thereon in the sum of the full amount of the contract which such subcontractor conditioned upon the payment to all persons who have and fulfill contracts which are directly with the subcontractor for performing labor and furnishing materials in the prosecution of the work provided for in the subcontract.
[Ord. of 1-12-1998(2)]
No action against the surety on a performance bond shall be brought unless brought within one year after completion of the contract, including the expiration of all warranties and guarantees, or discovery of the defect or breach of warranty, if the action be for such.
[Ord. of 1-12-1998(2)]
(a) 
Subject to the provisions of Subsection (b) below, any claimant who has performed labor or furnished material in accordance with the contract documents in the prosecution of the work provided in the contract for which a payment bond has been given and who has not been paid in full therefor before the expiration of 90 days after the last day on which such claimant performed the last of such labor or furnished the last of such materials for which the claimant claims payment, may bring an action on such payment bond to recover any amount due to the claimant for such labor or material and may prosecute such action to final judgment and have execution on the judgment. The obligee named in the bond need not be named a party to such action.
(b) 
Any claimant which has a direct contractual relationship with any subcontractor from whom the prime contractor has not required a subcontractor payment bond pursuant to § 23.5-11(f), but which has no contractual relationship, express or implied, with such contractor, may bring an action on the contractor's payment bond only if the claimant has given written notice to such contractor within 180 days from the day on which the claimant performed the last of the labor or furnished the last of the materials for which it claims payment, stating with substantial accuracy the amount claimed and the name of the person for which the work was performed or to whom the material was furnished. Any claimant which has a direct contractual relationship with a subcontractor from whom the contractor has required a subcontractor payment bond pursuant to § 23.5-11(f), but which has no contractual relationship, express or implied, with such contractor, may bring an action on the subcontractor payment bond. Notice to the contractor shall be served by registered or certified mail, postage prepaid, in an envelope addressed to such contractor at any place where his office is regularly maintained for the transaction of business. Claims for sums withheld as retainages with respect to labor performed or materials furnished shall not be subject to the time limitations stated in this subsection.
(c) 
Any action on a payment bond must be brought within one year after the day on which the person bringing such action last performed labor or supplied materials.
[Ord. of 1-12-1998(2)]
(a) 
In lieu of a bid, payment or performance bond, a bidder may furnish to the Director of Finance a certified check payable to the City or cash escrow in the face amount required for the bond, which shall be deposited in the appropriate City bank account awaiting further disposition in accordance with the contract and applicable law.
(b) 
If approved by the City Attorney, a bidder may furnish a personal bond, property bond or bank or saving institution's letter of credit on certain designated funds in the face amount required for the bid, performance or payment bond. Approval shall be granted only upon a determination that the alternative form of security affords protection to the City equivalent to the corporate surety's bond.
[Ord. of 1-12-1998(2)]
(a) 
In any contract for construction which provides for progress payments in installments based upon an estimated percentage of completion, the contractor shall be paid 95% of the earned sum when payment is due, with 5% being retained to assure faithful performance of the contract. All amounts withheld may be included in the final payment.
(b) 
In any subcontract for a City project which provides for progress payments in installments based upon an estimated percentage of completion, the subcontractor shall be paid at least 95% of the earned sum when payment is due, with not more than 5% being retained to assure faithful performance of the subcontract.
In the discretion of the City Manager, the City may require bid, payment or performance bonds on contracts for goods or services, the requirement for which must be set forth in the invitation to bid or request for proposal.