HomeMy WebLinkAboutORD 02 (1995)ORDINANCE 02 (1995)
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF DIAMOND BAR,
ESTABLISHING A PURCHASING SYSTEM AND REPEALING
ORDINANCES 20 (1"9),20A (1989)
A. Recitals
(i) Ordinance 20 (1989) and Ordinance 20A (1989) are hereby repealed in their entirety.
(ii) California Government Code Section 54202, et. seq., provides, in pertinent part, as
follows:
"Every local agency shall adopt policies and procedures, including bidding
regulations, governing purchases of supplies and equipment by the local agency.
Purchases of supplies and equipment by the local agency shall be in accordance with .
said duly adopted policies and in accordance with all provisions of law governing
same."
NOW THEREFORE, the City Council of the City of Diamond Bar does ordain as follows:
Section 1 • The Council finds and determines in all respects as set forth in Recitals, Part A
herein.
Section 2. The following provisions are hereby adopted as the Purchasing Ordinance of the
City of Diamond Bar to read, in words and figures, as follows:
Sections:
3.24.010
Establi.°'.j meta o:F Pn Vch9,sb,'tg Sys} '
3.24.020
Definifc;.,.a '
3.24.030
Cetytr a iztd Pwc h--ising Divisio-�(i
3.24.040
Purchasing Agent
3.24.050
Exemptiou from Ceiivali7?q Purchasing
3.24.060
Reyuisitioas
3.24.070
Use of Purchase Ordem
3.24.080
Emergency Purchases
3.24.090
Encumbrance of Funds
3.24.100
Inspection and Testing
3.24.110
Purchases Without Bidding
3.24.120
Informal Bid Procedures
3.24.130
Formal Bid Procedures
3.24.140
Sole Source Procurement
3.24.150
Cooperative Purchasing Programs
3.24.160
Local Preference
3.24.170
Use of Recycled Materials
3.24.180
Bidding for Public Works Projects
3.24.190
Contractual Authority
3.24.200
Surplus Personal Property —
Section 3,24.010. Establishment of a PurchasingSy= - In order to establish efficient
procedures for the purchase of supplies, services, and equipment: to secure for the City supplies,
services, and equipment at the lowest cost commensurate with quality needed and with due
consideration to usability; to exercise positive financial control over purchases; to clearly define
authority for the purchasing functions; to assure the quality of purchases; and to buy without favor
or prejudice, a purchasing system is adopted and shall control the procedures for all purchases
except as otherwise provided by law.
Section 3,24-020 De nition-, - As used in this ordinance, the following words and terms
shall be defined as follows unless the context indicates that a different meaning is intended:
(a) Bidders List shall mean a current file of sources of supply of articles for each category of
commodities repetitively purchased for City use.
(b) City shall mean the City of Diamond Bar.
(c) City Manager shall mean the chief executive officer of the City, appointed by the City
Council. The City Manager, or his designee, has the exclusive authority for specific administrative
responsibility for this ordinance.
(d) Contract shall mean an agreement, in writing, between two or more persons, with the
requisite authority, which creates an obligation to do a particular thing.
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(e) Department and using department shall mean any of the departments, offices, or other
_ organizational units of the City, and any special agency whose affairs and funds are under the
supervision and control of the City Council and for which the City Council is ex -officio the
governing body.
(f) Local bidder shall mean a firm or individual who regularly maintains a place of business
and transacts business in the City.
(g) Non-responsive bidder shall mean a bidder or prospective bidder who fails to furnish a
responsive bid.
(h) Professional services shall mean the services of architects, attorneys, auditors,
consultants, engineers, physicians, or other individuals or organizations possessing a high degree of
professional, unique, specialized, technical, or skill or expertise.
(i) Purchases shall mean purchases of supplies, services, and equipment and personal
property and shall include leases or rentals of such items as well as transactions by which the City
acquires ownership.
0) Purchasing agent shall mean the official designated by the City Manager for
enforcement and administration of this ordinance.
(k) Responsive bid shall mean an offer, submitted by a bidder, to furnish supplies, materials,
equipment, or contractual services in conformity with the specifications, delivery terms and
conditions, and other requirements included in the invitation for bids.
0) Services shall mean any and all services, including but not limited to, equipment service
contracts. Examples are: special lighting repair services, plumbing, and other such related repair or
providing of such service, labor or repair.
(m) Supplies, materials, and equipment shall mean any and all articles or things which shall
be furnished to or used by any department.
Section 3 24 030 Centralat Z&d PLrchaaing Division - There is created a purchasing division
within the finance department of the City, in which is vested authority for the centralized purchase
of supplies, services and equipment.
Section 3.24.040 Purch"ng AQcM - There is created the position of purchasing agent. The
purchasing agent shall be appointed by the City Manager to direct and manage the City's purchasing
system. 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, services and equipment required by any using
department in accordance with purchasing procedures prescribed by this ordinance; such
administrative regulations as the purchasing agent shall recommend 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 City Manager.
(b) Negotiate and recommend execution of contracts for the purchase of supplies, services
and equipment.
(c) Act to procure for the City the needed quality and quantity of supplies, services and
equipment.
_ (d) Endeavor to obtain as full and open competition as possible on all purchases.
(e) Prepare and recommend rules and regulations governing the purchase of supplies,
services and equipment for the City.
(f) Keep informed of current development in the field of purchasing, prices, market
conditions and new products. Recommend purchase of alternative products of a higher quality or
lower cost.
(g) Prescribe and maintain such forms as reasonably necessary to the operation of this
ordinance and other rules and regulations.
(h) Supervise the receipt and inspection of all supplies, services and equipment purchased to
insure conformance with. specifications.
(i) Supervise the transfer of surplus or unused supplies and equipment between departments
as needed and the sale of all supplies and equipment which cannot be used by any department or
which have become unsuitable for City use.
0) Maintain appropriate records needed for the efficient operation of the purchasing
division.
(k) Encourage the standardization of similar equipment materials, and services used by the
various City departments.
(1) Maintain an approved bidder's list, bidders' catalog file and records needed for the
efficient operation of the purchasing division.
Section 3.24 050 Exemption from CentralizedPurchasing The City Manager may
authorize, where legally required to do so in writing any department to purchase or contract for
certain specified classes of supplies, services, or equipment independently of the purchasing agent;
but such purchases or contracts shall be made in conformity with the applicable provisions of this
ordinance. The City Manager may also rescind such authorization to purchase independently, by
written or verbal notice to the department or departments concerned, unless otherwise prohibited by ,
law.
Section 3.24.060 Reap - All departments shall submit requests to the purchasing
agent or his designated representative(s) by standard requisition forms for the supplies, services, or
equipment as required for their operations and purposes and within the limits of funds appropriated
therefor. The purchasing agent will review each requisition and may question its propriety in view
of budgetary and other concerns, and may require fiom the head of the requesting department a
justification of the quantity or quality requuisitioned. Requisitions shall not be required for
purchases costing less than the Petty Cash maximum.
Section 3 24 070. Use e of Eumba - - Purchase of supplies, services and equipment
shall be made by purchase order or City Council approved contract. Except in cases of emergency
as defined herein, no officer or employee of the City shall request a supplier to deliver supplies,
services and equipment to the City unless a purchase order is issued by the purchasing agent or his
designated representative. Purchase orders shall not be required for purchases costing less than the
Petty Cash maximum.
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Section 3 24 080 EmergC= Purchases - The purchasing agent may authorize emergency
purchases free of all provisions of this ordinance upon showing by any department or officer that the
r` purchase required is for the immediate preservation of health, safety and welfare of the people,
repair to existing City equipment which impacts ongoing City operations, or for the protection of
property and that there is a present, immediate and existing emergency which could not reasonably
be foreseen. A confirming Purchase Order must be completed, after the emergency.
Sion 3.24.090 Enc=b=ce of Funds - Except in cases of emergency, the purchasing
agent shall not issue any purchase order for supplies, services or equipment unless there exists an
unencumbered appropriation in the fund account against which said purchase is to be charged.
Section 3.24, 100 Inspection and Testing - The purchasing agent may inspect supplies and
equipment delivered and contractual services performed, to determine their conformance with the
specifications set forth in the order or contract. 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 compliance with specifications.
Section 3.24.110 Purchases without Bidding - Purchases of supplies, services, equipment
and the sale of personal property shall be by bid procedures pursuant to this ordinance. Bidding
shall not be required when one of the following conditions pertains:
(a) The amount involved for purchases of supplies, services and equipment from a single
vendor has a total estimated value of less than one thousand dollars within the fiscal year.
(b) Contracts for legal advertising.
(c) An essential or critical need requires that an order be placed with the best available
source of supply due to time constraints.
(d) If, at the discretion of the purchasing agent, and upon a finding supported with written
documentation, a distinct advantage is clearly in the City's best interest in regard to product
uniformity, total cost of acquisition, and/or similar considerations. The City Manager or his
designee must approve such purchases that exceed informal bid limits.
Section 3.24.120 Informal Bid Procedures - Purchases of supplies, services and equipment
of an estimated value in the amount of between one thousand and ten thousand dollars may be
made by the City Manager in the open market pursuant to the procedure prescribed below.
(a) Minimum number of bids. Purchases shall be based on at least three bids, and shall be
awarded to the lowest responsible bidder, except as provided within this Ordinance.
(b) Solicitation of bids. The purchasing agent may solicit quotations by written request to
prospective suppliers, or by telephone.
(c) Temporary Stafflng, and Professional and Consultant Services. Proposals for all
Temporary Staffing, and Professional and Consultant Services may be obtained pursuant to this
section. Contracts in excess of ten thousand dollars ($10,000) shall be approved by the City
Council.
(d) Response to Solicitation. If purchase cost is estimated to be five thousand dollars
($5,000) or less, verbal quotation responses may be accepted. If the purchase cost is estimated to be
between five thousand and one dollars and ten thousand dollars ($5,001 to $10,000) written
iuotation responses should be obtained.
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(e) Selection of Temporary Staffing, and Professional and Consultant Service Providers. It
is not mandatory that. a contract for tempotary staffing, and professional and consultant services be
awarded to the lowest proposer when it is believed that the quality of service or technical expertise
provided by a higher proposer warrants t4ir selection. Reasons for the selection of any proposer,
other that the low proposer shall be in writing and shall be retained with the record of quotation.
(f) Record of quotations. The purchasing agent shill keep a record of all open market
procurement and quotations for a period of three years afteraudit of the fiscal year in which the
purchase was made. This record, while so kept, shall be open to public inspections.
Section 3,24-130 Formal Bid Procedures - Except as otherwise provided herein, purchases
of supplies, services and equipment of an estimated value greater than ten thousand dollars, shall be
by written bid with City Council approval prior to award to the lowest responsible bidder, pursuant
to the procedure prescribed herein.
(a) Notice inviting bids. Notices inviting bids shall include a general description of the
supplies, service or equipment to be purchased, shall state where.bid forms and specifications may
be secured, and the time and place for opening bids.
1. Published notice. Notice inviting bids shall be published at least ten days before the date
of the opening of the bids. Notice shall be published at least once in a newspaper of general
circulation, published in the area of the City.
2. Bidders' list. The purchasing agent shall also solicit sealed bids from all responsible
prospective suppliers whose names are on the bidder's list or who have requested their names to be
added thereto. The purchasing agent shall take appropriate affirmative actions to notify and
encourage City -located businesses to submit their respective firm's names, addresses, telephone —
numbers; and their products and/or services in which they transact business.
(b) Bidder's security. When deemed necessary by the purchasing officer, bidders' security
may be prescribed in the public notices inviting bids. Bidders shall be entitled to return of bid
security; provided that a successful bidder shall forfeit his bid security upon refusal or failure to
execute the contract within ten days after the notice of award of contract has been mailed, unless the
City is responsible for the delay. The City Council may, on refusal or failure of the successful
bidder to execute the contract, award it to the next lowest bidder, the amount of the lowest bidder's
security shall be applied by the City to the difference between the low bid and the second lowest
bid, and the surplus, if any, shall be returned to the lowest bidder. The City Council may reject all
bids and re -advertise.
(c) Bid opening procedure. Sealed bids shall be submitted to the City Clerk and shall be
identified as "bids" on the envelope. The City Clerk, 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 during regular business hours for a period of not less than thirty calendar days
after the bid opening.
(d) Rejection of bids. At its discretion, the City Council may reject any and all bids and re -
advertise for bids. However, when all bids exceed the authorized budgeted amount, the City
Manager may authorize rejection of all bids and authorize re -bidding based upon the original
specifications or as they may be modified, in accordance with procedures prescribed herein.
(e) Award of bids. Bids shall be awarded by the City Council to the lowest responsible
bidder except as otherwise provided herein.
(f) Tie Bids. If two or more bids received are the same total amount or unit price, quality
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and service being equal and if the public interest will not permit the delay of re -advertising for bids,
the City Council may accept the one it chooses or accept the lowest bid made by negotiation with tie
bidders at the time of the bid opening.
Section 3.24.140 Sole Source Procurement- Situations in which a procurement of any
product is obtainable only from a single or sole source, and not adaptable to competitive bidding,
the purchasing agent, upon approval of the City Manager, shall negotiate with the purveyor of such
equipment, product supply or service, so that the City receives the desired supplies, service,
equipment or product, on fair and equitable terms.
Section, 3.24.150 Cooperative Purchming Progmg - Purchases of supplies, services and
equipment made under a cooperative purchasing program, utilizing purchasing agreements
maintained by the state, county, or other public agencies, are exempted from the requirements of
this Ordinance. California Public Contract Code Section 10324 authorizes the Department of
General Services to make purchases of supplies, equipment or materials on behalf of cities in those
instances when the purchases can be made by the Department of General Services upon the same
terms, conditions and specifications, at a purchase price lower than that which the City can obtain
through,its normal purchasing procedures. In those instances where it is determined that purchasing
through the State, the county, or other governmental agencies will result in savings to the City, the
City is authorized to make such purchases.
Section 3.24.160 Local Preference - In order to promote the economic health of the City and
to encourage local participation in the procurement process, the City, in determining, the lowest
responsible bidder, may take into consideration the sales tax (one percent) which would be returned
to the City.
Section 3.24.170 Use of Recycled Materials - The City encourages the use of recycled paper
and materials in response to all bids for supplies and services. Wherever possible, preference will
be given to those vendors of, supplies and services to the City who utilize recycled materials,
including recycled paper products.
Section 3.24.180 Bidding for Public works aWects - Public works projects, as defined in
the California Public Contract Code Section 20161 or subsequent amendments thereof, shall be bid,
advertised and awarded in accordance with applicable sections of the California Public Contract
Code.
Section 3.24.190 Contractual Authority- The City Manager is authorized to enter into
contracts where the amount of the contract does not exceed ten thousand dollars with any single
vendor within a fiscal year; provided there exists an unencumbered appropriation in the fund
account against which said expense is to be charged. Contracts in excess of the City Manager's
authority must be approved by the City Council. In the case of Professional Services, where there
does not exist an specific appropriation in the fund account against which said expense is to be
charged, the City Manager's expense authorization shall not exceed five thousand dollars ($5,000).
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Section 3 24.200 Surplus Personal Property - The City Manager is authorized to determine,
with approval of the City Council, whether any item of City -owned personal property is surplus to
the present or future needs of the City. He may designate the purchasing agent to fulfill this ---
function. The City Manager may require periodic reports showing all City personal property which
is no longer used or has become obsolete.
(a) Items declared to be surplus shall be offered for sale on a competitive -bid basis. Bids
may be solicited by written requests, telephone, public notice posted on City property, by
advertisements in any newspaper or magazine, or by any combination of such methods. A record
shall be kept of notices given and bids received.
(b) The City Manager or his designee is authorized to sell to the highest bidder. Sale of any
item or items with an estimated value in excess one thousand dollars shall be sold to the highest
bidder, in accordance with the formal bid procedures, or any other means provided herein, with the
approval of the City Manager.
(c) When, after a reasonable effort has been made to obtain bids, no bids have been obtained
for any item of City -owned personal property declared to be surplus, the City Manager or his
designee is authorized to dispose of such items for the highest scrap value that can be obtained
therefore, and if a reasonable effort to do so brings no opportunity to sell the same for scrap, he may
cause its destruction or any other disposition thereof.
(d) 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.
Section 3. The City Clerk shall certify to the adoption of this ordinance and shall cause the
same to be published as required by law.
ADOPTED AND APPROVED this 21st day of Feb. ,1995.
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I, Lynda 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 7th day of February , 1995 and was finally passed at a regular meeting of the City
Council of the City of Diamond Bar held on the 215t day of February , 1995, by the
following vote:
AYES: COUNCIL MEMBERS: Ansari, Harmony, Miller
M/Papen
NOES: COUNCIL MEMBERS: None
ABSENT: COUNCIL MEMBERS: MPT/Werner
ABSTAINED: COUNCIL MEMBERS: None
ATTES�����OaQ�
L ABL i 'S, GO Clerk
City of Diarad-� 'ir3ar- - -
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