Memorandum

City of Lawrence

Department of Legal Services

 

TO:

Dave Corliss, Interim City Manager

FROM:

R. Scott Wagner, Legal Assistant

CC:

Frank Reeb, City Clerk & Director of Administrative Services

Date:

August 4, 2006

RE:

K.S.A. 13-1017

 

 

Top Ten Kansas Cities and K.S.A. 13-1017

 

City[1]

2005 Population

 

Chartered out of

 K.S.A. 13-1017

 

Charter Ordinance

 

Can Waive Engineer’s Estimate

 

Other References

Wichita

353,878

Yes

Charter Ordinance No. 111, 151 & 158

Yes – but award cannot exceed estimate. 

Ch. Ord. 151: Sec. 1 (A)…if all bids submitted exceed the estimated cost, the governing body may reject all bids or may negotiate with any bidder who has submitted a responsive bid, beginning such negotiations with the bidder who has submitted the lowest bid and continuing with the next lowest bidder and so on, and if any such bidder agrees to perform the contract work for the estimated cost may enter into a contract with such bidder.

The current charter ordinance allows the City to negotiate with the low bidder whose bid exceeds the engineer’s estimate, but only on the basis that the award can be made within the original estimate.

Overland Park

162,637

Yes

Charter Ordinance

No. 71

Yes. 

Sec. 2…if all bids exceed the estimated cost, the governing Body may accept the bid and let the work by contract to the lowest and best responsible bidder; but if that cost is greater than 7% over the estimated cost, the department director of the department letting the bids or his/her designee shall give a full explanation to the Governing Body of the reason for the discrepancy.

 

 

Unified Gov’t

145,010

Yes

Charter Ordinance

No. 82

Yes.

Sec. 3-102.  According to their procurement code, if the lowest bid is less than 5% higher than the engineer’s estimate, the purchasing director can enter into negotiations with the lowest responsible bidder, including an adjustment of the bid elements to bring the negotiated bid to within the engineer’s estimate.  If greater than 5% of the estimate, the project must be re-bid, unless an emergency situation exists.

Section 3-102

Topeka

121,886

Yes

Charter Ordinance

No. 80

Yes. 

Sec. A12-28…in the event no bid is received below the engineer’s estimate, or if no responsible person shall propose to enter into the contract at a price not exceeding the estimated cost, the engineer shall be authorized to reexamine his estimate.  If in the opinion of the city engineer there is no public benefit achieved by rebidding the contract, then the city engineer is authorized to negotiate the contract without rebidding….

Section A12-28 of the City Code.

Olathe

108,314

Yes

Charter Ordinance

No. 17

Yes.

Ch. 3.5.030 City Code …shall be purchased by competitive sealed bidding from the lowest responsive and responsible bidder, after due notice inviting bids and unless specifically provided otherwise herein.  (b)  Bid Evaluation and Award.  The City Manager shall recommend to the City Council an award as he determines to be most advantageous to the City, taking into consideration price and any other pertinent evaluation factors.

Chapter 3.5 of City Code

Olathe practice is that the City Council can choose to accept any bid made, regardless of the engineer’s estimate.  Council can also reject all bids and start the process again.

Lawrence

81,854

Yes

Charter Ordinance

No. 19

Yes. 

It has been City practice to waive the engineer’s estimate when all bids exceed the estimate per charter ordinance no. 19.  See attached chart of recent City project awards where the bid exceeded the engineer’s estimate.

Ch. 1-304

Ordinance 7350

Shawnee

56,186

Yes

Charter Ordinance

No. 34

Yes. 

No additional code provisions adopted.  Administrative practices in place and per invitations to bid, that give discretion to the Director of Public Works to recommend a bid (even if exceeding engineer’s estimate) if determined to be in the best interests of the City.

 

 

Manhattan

46,578

Yes

Charter Ordinance

No. 13

Yes. 

Section 3.  If no responsible person shall propose to enter into the contract at a price not exceeding the estimated cost,  all bids shall be rejected and the City shall then have authority to enter into negotiations with the lowest bidder and enter into a contract with such lowest bidder upon reaching mutually agreeable conditions for both the City and such lowest bidder.

 

Salina

45,986

Yes

Charter Ordinance

No. 27

Yes. 

Sec. 2-235 (2)  In excess of $10,000, the City shall utilize a sealed bid process in the awarding of a contract.  If all bids exceed the engineer’s estimate, the city manager shall provide a report to the governing body citing reasons why the bids exceed the engineer’s estimate.  The governing body may award the contract notwithstanding the fact it exceed the engineer’s estimate based upon a finding that such an award is in the public interest…

City Code

Chapter 2, Section 233 et seq.

Lenexa

42,548

Yes

Charter Ordinance

No. 52

Yes. 

Sec. 1  …If no responsible bid is received within the estimate, the governing body shall have power to make the improvement within the estimated cost thereof…

Lenexa practice is to waive the engineer’s estimate if needed, even if all bids exceeded the estimate.

 



[1]  Top Ten Kansas Cities by population.  From the League of Kansas Municipalities.