HomeMy WebLinkAboutORD 20 (1989)ORDINANCE NO. 20 (1989)
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY
OF DIAMOND BAR ESTABLISHING A PURCHASING
SYSTEM.
The City Council of the City of Diamond Bar does ordain
as follows:
Section 2. Chapter 2.104 of Title 2 of the Los Angeles
County Code, as heretofore adopted by the City Council of the
City of Diamond Bar, hereby is repealed.
S@CtiOn 2. A-4oution of Purchasing System. In order to
establish efficient procedures for the purchase of supplies and
equipment at the lowest possible cost commensurate with quality
needs, to exercise positive financial control over purchases, to
clearly define authority for the purchasing function, and to
assure the quality of purchases, a purchasing system is adopted.
Section 2. Sc02O s2 Ordinance. The procedures
established by this Ordinance shall apply only to the purchase of
supplies, equipment and services, and shall not apply to public
projects as defined in Section 20161 of the California Public
Contracts Code.
S oto 4. Centralised Purchasing Division. There is
created a centralized purchasing division in which is vested
authority for the purchase of supplies and equipment.
section 3. Purchasing Agent. There is created the
position of purchasing agent, who may also be known as the
purchasing officer. The purchasing agent shall be the head and
have general supervision of the purchasing division. The duties
of purchasing agent may be combined with those of any other
office or position as specified by the City Manager. The
purchasing agent shall have the authority to:
(a) Purchase or contract for supplies and equipment
required by any using agency in accordance with purchasing
procedures prescribed by this Ordinance, such administrative
regulations as the purchasing agent shall adopt for the internal
management and operation of the purchasing division and such
other rules and regulations as shall be prescribed by the City
Council or the City Manager;
(b) Negotiate and recommend execution of contracts for
the purchase of supplies and equipment;
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(c) Act or procure for the City the needed quality in
supplies and equipment at least expense to the City;
(d) Discourage uniform bidding and endeavor to obtain
as full and open competition as possible on all purchases;
(e) Prepare and recommend to the City Council rules
governing the purchase of supplies and equipment for the City;
(f) Prepare and recommend revisions and amendments to
the purchasing rules;
(g) Keep informed of current developments in the field
of purchasing, prices, market conditions and new products;
(h) Prescribe and maintain such forms as are
reasonably necessary for the operation of this chapter and other
rules and regulations;
(i) Supervise the inspection of all supplies and
equipment purchased to insure conformance with specifications;
(j) Recommend the transfer of surplus or unused
supplies and equipment between departments as needed;
(k) Maintain an approved vendors list, vendors'
catalog file and records needed for the efficient operation of
the purchasing division.
Section A. Purchasing Regulations. The purchasing
agent shall be responsible for determining that the regulations
and procedures in Sections 7 through 13 are carried out.
Section ?.• Exemmtions irom Centralised Purchasing,
The City Manager may authorize, in writing, any department to
purchase specified supplies and equipment independent of the
purchasing agent; provided, however, that the City Manager shall
require that such purchases be made in conformity with the
procedures established by this Ordinance and shall further
require periodic reports from the department on the purchases
made under such written authorization.
section 1. Estimates 21 ILequirements. All using
departments shall file detailed estimates of their requirements
in supplies and equipment in such manner, at such time, and for
such future periods as the purchasing agent shall prescribe.
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Section 1. Requisitions. Using departments shall
submit requests for supplies and equipment to the purchasing
agent by standard requisition form, or by other means as may be
established by the purchasing rules and regulations.
Section 10. Purchase orders. Purchase of supplies and
equipment shall be made only by purchase orders. Except as
otherwise provided herein, no purchase order shall be issued
unless the prior approval of the purchasing agent or his
designated representative has been obtained.
Section U. Encumbrance of Funds. Except in cases of
emergency, the purchasing agent shall not issue any purchase
order for supplies or equipment unless there exists an
unencumbered appropriation in the fund account against which said
purchase is to be charged.
seatiou 12. Inspection AAA Testing. The purchasing
agent shall, in his or her discretion, inspect supplies and
equipment delivered to determine their conformance with the
specifications set forth in the order. The purchasing agent
shall have authority to require chemical and physical tests of
samples submitted with bids and samples of deliveries which are
necessary to determine their quality and conformance with
specifications.
Section 13. Irld4ing. Purchases of supplies and
equipment shall be by bid procedures pursuant to Section 14
through 29. Bidding may be dispensed with only under conditions
stated in Section 30.
Section 14• Formal [Se_ aledl $A Procedures. Except as
otherwise provided herein, purchases of supplies and equipment of
an estimated value greater than Ten Thousand Dollars ($10,000.00)
shall be awarded to the lowest responsible bidder pursuant to the
formal bid procedure hereinafter prescribed.
Section 1_5,. Notice Inviting Formal Bids. Notices
inviting formal bids shall include a general description of the
article or service desired, shall state where bid documents and
specifications may be secured, and the time and place for opening
bids.
OaCtion16. published NOtIOO for Formal Bids. Notices
inviting formal bids shall be published at least ten days prior
to the date of opening of the bids. Notices shall be published
at least once for non-public projects and at least twice, not
less than five days apart for public projects, in a newspaper
regularly circulated in the City.
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Section 17. Approved Vendors List. The purchasing
agent shall also solicit formal sealed bids from responsible
suppliers whose names are on the approved vendors list, or who
have made written request that their names be added thereto.
800tion 18_. Bulletin Board Notice. The purchasing
agent shall advertise the pending formal purchases by posting a
notice on the public bulletin board at the City offices.
0-0-OtiO 19. Bidder's Security. Where deemed necessary
by the purchasing agent, formal bids shall be accompanied by
security, either cash, cashier's check, certified check or surety
bond, in a sum equal to ten percent of the total aggregate of the
bid, and shall be designated in the notice inviting bids.
Bidders shall be entitled to the return of bid security;
provided, however, that a successful bidder shall forfeit the bid
security upon his or her refusal or failure to execute the
contract within ten (10) days after the notice of award of
contract has been mailed, unless the City is solely responsible
for the delay in executing the contract. The City Council may,
on refusal or failure of the successful bidder to execute the
contract, award it to the next lowest responsible bidder who is
willing to execute the contract, or may reject all bids and
readvertise.
Section 20. Other Formal DQ Requirements. A faithful
Performance bond and labor and material bond shall be required
for all public projects, unless waived by the City Council, in an
amount reasonably necessary to protect the best interests of the
City. In addition, the City Council shall have authority to
require a faithful performance bond or other bonds before
entering into a contract other than a public project contract.
If bonds are required, the form and amount thereof shall be
designated in the notice inviting bids.
aection U. Formal opening procedure. Sealed bids
shall be submitted to the purchasing agent and shall be
identified as "bids" on the envelope. The purchasing officer, or
designee, shall publicly open all bids at the time and place
stated in the public notices. A tabulation of all bids received
shall be available for public inspection in the purchasing office
during regular business hours for a period of not less than
thirty (30) calendar days after the bid opening.
lAction U. Rejection At Formal Bids. In its
discretion, the City Council may reject any and all bids
presented and may cause readvertising for bids pursuant to the
procedure hereinabove prescribed. However, when all bids exceed
the authorized budgeted amount, the City Manager may authorize
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rejection of all bids and authorize rebidding based upon the
original specifications or as they may be modified, in accordance
with procedures prescribed herein.
SOCtIOU 23- Award 21 Formal Bids. Except as otherwise
provided herein, formal bid contracts shall be otherwise provided
herein, formal bid contracts shall be awarded by the City Council
to the lowest responsible bidder. The determination of "lowest
responsible bidder" shall be at the discretion of the City
Council pursuant to findings and recommendations presented by the
purchasing agent at the time of award of contract.
S ct o 24. ,Tie Formal Bids. If two or more formal
bids received are for the same total amount or unit price,
quality and service being equal, and if the public interest will
not permit the delay of readvertising for bids, the City Council
may in its discretion accept the one it chooses or accept the
lowest bid made by and after negotiation with the tie bidders at
the time of the bid opening or award of contract.
Section moi•tO Formal Bids. When no formal bids or no
responsive bids are received, the purchasing officer is
authorized to negotiate for written proposals, and his or her
recommendation shall be presented to the City Manager and the
award, if any, shall be made in accordance with applicable
provisions prescribed herein.
BectiOn ZC. onen Market Or Informal D -U Procedure.
Purchases of supplies and equipment or an estimated value in the
amount of Ten Thousand Dollars ($10,000.00) or less may be made
by the purchasing agent in the open market pursuant to the
procedure prescribed in Section 27 through 29 and without
observing the procedure prescribed in Sections 14 through 25;
provided, however, all bidding may be dispensed with for
purchases of supplies and equipment having a total estimated
value of less than One Thousand Dollars ($1,000.00).
t o. Minimum Number of Informal Bids. Open
market purchases shall, wherever possible, be based on at least
three informal bids, and shall be awarded to the bidder offering
the most advantageous bid to the City after consideration of
price, quality, durability, servicing, delivery time,
standardization, and other factors.
section 2$. Notice Inviting Informal Bids. The
purchasing agent shall solicit informal bids by written requests
to prospective vendors, or by telephone, or by public notice
posted on a public bulletin board at the City offices.
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section 21• Record 21 Informal Sid&. The purchasing
agent shall keep a written record of all open market purchases
and informal bids for a period of two years. This record, while
so kept, shall be open to public inspection.
section 2,Q. Exceptions to Competitive Bidding
Requirement. Notwithstanding any provision of this chapter to
the contrary, the competitive bidding procedures and requirements
may be dispensed with in any of the following instances:
(a) When the estimated amount involved is less than
One Thousand Dollars ($1,000.00).;
vendor; (b) When the commodity can be obtained from only one
(c) The City Manager may authorize the purchase of
materials, supplies, equipment and services where an emergency is
deemed to exist and it is determined that service involving the
public health, safety or welfare would be interrupted if the
normal procedure were followed. All emergency purchases which
would otherwise require formal bidding procedures made pursuant
to this Section shall be submitted to the City Council for
ratification at the next regular Council meeting after the
purchase is authorized;
(d) Contracts for personal services, for professional
and consultant services, and for other, non-public projects and
contractual services may be executed without observing the
bidding procedures provided herein. The City Manager is
authorized to enter into such contracts where the amount of the
contract does not exceed Ten Thousand Dollars ($10,000.00);
provided there exists an unencumbered appropriation in the fund
account against which said expense is to be charged. Where the
amount of the contract exceeds Ten Thousand Dollars ($10,000.00)
the contract shall be approved by the City Council;
(e) Any agreement involving acquisition of supplies,
equipment or service entered into with another governmental
entity.
Section 31. Regulations Regarding Selection of
Contract services. The City Council shall, be resolution,
prescribe procedures, rules and regulations governing the
solicitation, selection and award of proposals or bids for the
furnishing of personal services or professional or consulting
services or for other contractual services, the contracts for
which may be awarded without observing the bidding procedures
provided for in this Ordinance. Such procedures, rules and
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regulations shall have as one purpose the obtaining of
contractual services of the highest quality together with cost-
effectiveness.
Section U. SUKplus SUDDlies and EgUipment. All using
departments shall submit to the purchasing agent, at such times
and in such forms as he or she shall prescribe, reports showing
all supplies and equipment which are no longer used or which have
become obsolete and worn out.
Section 33., Surplus Supplies -- Trade-ins. The
purchasing agent shall have authority to exchange for or trade in
on new supplies and equipment all supplies and equipment which
cannot be used by any department or which have become unsuitable
for City use.
('.tion A- SUKplus Supplies = sale. The purchasing
agent shall have authority, subject to approval of the City
Manager, to dispose of surplus supplies or equipment by auction
or by sale or otherwise after receiving bids or proposals which,
in his or her judgment, provide the maximum return to the City.
Sectio 33. The City Clerk shall certify to the
adoption of this Ordinance and shall cause the same to be posted
in three (3) public places as required by Resolution No. 89-6.
1989.
ADOPTED AND APPROVED this 1st
day of August
Y- 0". 1
Mayor
I, LINDA BURGESS, City Clerk of the City of Diamond
Bar, do hereby certify that the foregoing Ordinance was
introduced at a regular meeting of the City Council of the City
of Diamond Bar held on the 18th day of July , 1989,
and was finally passed at a regular meeting of the City Council
of the City of Diamond Bar held on the 1st day of August ,
1989, by the following vote:
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AYES:
COUNCIL
MEMBERS:
Forbing, Miller,
Werner, Mayor Pro Tem Horcher
NOES:
COUNCIL
MEMBERS:
Mayor Papen
None
ABSENT:
COUNCIL
MEMBERS:
None
ABSTAINED:
COUNCIL
MEMBERS:
None
ATTEST :
n Burgess, City elerk
City of
Diamond Bar
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