Mayor and Council

   For the meeting on:

  January 14, 2013
   Department:   Finance
   Division:  Purchasing
   Responsible staff:  Eileen Morris, Purchasing Manager
  phone: (240) 314 - 8432

Adoption of Ordinance to Amend Chapter 17 of the Rockville City Code, Entitled “Purchasing” to Amend and Add Definitions of “Local Business,” and “Tie Bids;” and to Amend Provisions on Award of Tie Bids

Staff recommends that the Mayor and Council adopt the attached ordinance. The ordinance has been amended to revise and clarify the definition of "local business." If the Mayor and Council find the changes to the ordinance acceptable, a motion to amend the ordinance as modified should be made, seconded and passed. Then, the ordinance as amended may proceed to adoption.

Change in Law or Policy
Adopting the Ordinance amends Chapter 17 of the Rockville City Code entitled Purchasing.

The purpose of the purchasing code is to provide guidelines for the purchase of City supplies, services, equipment and bidding construction of public projects, including obtaining the most qualified vendors in a fair and impartial manner at a reasonable price. The Code also establishes financial controls over purchasing and sets recommended purchasing approval authority limits for the Mayor and Council, City Manager and the Purchasing Agent.

On December 17, 2012, Mayor and Council directed staff to revise the City Code section on Tie Bids to allow for award to a local firm in the event of a tie bid between a local and non-local firm.

The proposed changes to Chapter 17 involves defining local firms, tie bids and modifying Section 17-61 Formal Solicitation - Competitive Sealed Bidding (j) Tie Bids.

The change in the definition for "local business" reflected below addresses a concern brought up by the Mayor and Council during the introduction of the Ordinance on January 7, 2013.

Amend Section 17-16. Definition to read as follows:

Local business means a business enterprise, including but not limited to a sole proprietorship, partnership, corporation, or limited liability company which (i) has a physical business address located within the corporate limits of the City of Rockville from which the vendor operates or performs business on a day-to-day basis that is a substantial component of the goods or services being offered to the City; and (ii) for the most recent tax year, has paid any real property or personal property tax due to the City. Post Office Boxes shall not be used for the purpose of establishing a physical address within the City.

Mayor and Council History
This ordinance was introduced on January 7, 2013.

Next Steps
Upon adoption of the ordinance by the Mayor and Council, staff will update Chapter 17 of the Rockville City Code entitled Purchasing.

Attachment A: Revised Ordinance


Department Head:

Gavin Cohen, Chief Financial Officer
Approved on: 01/09/2013

City Manager:

Approved on: 01/09/2013