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HomeMy WebLinkAboutORD 07(2014)ORDINANCE 07 (2014) AN ORDINANCE OF THE CITY OF DIAMOND BAR REVISING THE CITY'S PURCHASING SYSTEM AND AMENDING THE DIAMOND BAR MUNICIPAL CODE WHEREAS, the City has established a purchasing ordinance in Chapter 3.24 of the City Code ('Purchasing Ordinance") to provide an efficient and cost-effective process for the purchase of supplies, services, personal property and equipment; and WHEREAS, the City desires to revise and amend the Purchasing Ordinance as Set forth herein. Now therefore, the City Council of the City of Diamond Bar does ordain as follows: Section 1. Title 3, Chapter 3.24 of the Diamond Bar Municipal Code is repealed in its entirety and is replaced to read as follows: Chapter 3.24 Purchasing Ordinance Sections: 3.24.010 Establishment of Purchasing System 3.24.020 Definitions 3.24.030 Decentralized Purchasing 3.24.040 Purchasing Manager 3.24.050 Contractual Authority 3.24.060 Purchasing Procedure 3.24.070 Exceptions to Purchasing Procedure 3.24.080 Formal Bid Process 3.24.090 Formal Bid Procedures for Public Projects and Public Works Contracts 3.24.100 Encumbrance of Funds 3.24.110 Change Orders 3.24.120 Professional Services 3.24.130 Temporary Staffing 3.24.140 Local Preference 3.24.150 Use of Recycled Materials 3.24.160 Surplus Personal Property 3.24.010 ESTABLISHMENT OF A PURCHASING SYSTEM To establish efficient procedures for the purchase of supplies, services, personal property and equipment; to secure for the City supplies, services, and equipment at the lowest cost commensurate with the 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. 3.24.020 DEFINITIONS 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) Blanket Purchase Ordershall mean an agreement whereby the City contracts with a vendor to provide supplies or equipment on an as -needed basis throughout the fiscal year. (b) Budget Authority shall mean that with the exception of emergency procedures, no purchase shall be made without prior approval and appropriation in the City's annual budget. (c) Capital Asset shall mean land, improvements to land, easements, buildings, building improvements, vehicles, machinery, equipment, infrastructure and all other tangible assets that are used in operations, cost in excess of $5,000 and that have initial useful lives extending beyond one year. (d) City shall mean the City of Diamond Bar (e) 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. (f) Encumbrance shall mean a contingent liability and reservation of a budget appropriation incurred as a result of the issuance of a purchase order and/or contract. (g) Personal Property shall mean any tangible property not including land or real estate. This includes but is not limited to vehicles, equipment, suppiies, furniture and fixtures. (h) Purchases shall mean procurement of supplies, services, equipment and personal property and shall include leases or rentals of such items. (i) Professional Services shall mean, but is not limited to, any type of professional services that may be lawfully rendered including the services of architects, attorneys, auditors, consultants, engineers, physicians, accountants, information technology professionals or other individuals or 2 organizations possessing a high degree of professional, unique, specialized, technical skill or expertise. �) Public Project have the same meaning as set forth in Public Contract Code section 20161 as follows: 1. The erection, improvement, painting or repair of public buildings and works; 2. Work in or about streams, bays, waterfronts, embankments or other work for protection against overflow; 3. Street or sewer work, except maintenance or repair; and 4. Furnishing of supplies or materials for any such project, including maintenance or repair of streets or sewers. (k) Purchase Order shall mean a written authorization issued by the City to a provider of labor, materials or services for which the City agrees to pay. (I) Responsible Bid shall mean an offer submitted by a responsible bidder to furnish supplies, materials, equipment, personal property or contractual services in conformity with the specifications, delivery terms, conditions and other requirements included in the request for bids. (m) Responsible Bidder shall mean a bidder who submits a responsible bid, i.e. a bidder, who has furnished, when requested, information and data to prove that his financial resources, production or service facilities, service reputation and experience are adequate to make satisfactory delivery of supplies, materials, equipment or contractual services on which the bids are made, and who has not violated, or attempted to violate, any provision of this Chapter. (n) Services shall mean any and all services, with the exception of professional services as defined in this section (i) above, including but not limited to equipment service contracts. (o) Splitting shall mean dividing a purchase or contract into two or more parts in order to avoid the requirements of this policy. Splitting is prohibited. Further, splitting of a public works project is a misdemeanor under PCC section 20163 and is prohibited. (p) Surplus Personal Property shall mean any personal property that is no longer needed or useable by the City. 3.24.030 DECENTRALIZED PURCHASING The purchase of supplies, services, personal property and equipment is the responsibility of the individual departments requiring said supplies, services, personal property and equipment. It is the responsibility of the Purchasing Manager described in Section 3.24.040 (a) to ensure the adherence to the procedures prescribed in this Chapter. 3.24.040 PURCHASING MANAGER (a) Creation of Position of Purchasing Manager There is hereby created the position of Purchasing Manager, who shall be the City Manager. (b) Power and Duties The Purchasing Manager shall direct and supervise the acquisition of all goods and services under this Chapter and may delegate any of the powers and duties conferred upon him as provided herein. 2. Purchasing Agents. In accordance with Diamond Bar Municipal Code 3.24.040 (b), the Purchasing Manager may delegate the responsibility for administering purchasing policies and procedures to one or more Purchasing Agents. The authorized Purchasing Agents Shall include: L Deputy City Manager ii. Finance Director iii. Public Works Director iv. Community Development Director V. Community Services Director vi. Information Services Director 3. Purchasing Delegates. Additionally, the Purchasing Manager may delegate authority to the Purchasing Agents to delegate authority to additional individuals within their supervision who shall be authorized to make purchases. Individuals delegated purchasing authority hereunder are referred to as "Purchasing Delegates". Purchasing Delegates shall be designated in accordance with the following requirements: i. A written list of Purchasing Delegates must be submitted to the Finance Director and include the name and maximum dollar purchasing authority authorized for each individual. ii. A written list of Purchasing Delegates must be approved on an annual basis or upon changes in employment status, M whichever is more frequent, by the City Manager, the Finance Director and the Department Director. iii. The Finance Director must maintain a written record of all approved Purchasing Delegates. 3.24.050 CONTRACTUAL AUTHORITY Provided there is adequate unencumbered appropriation in the account against which the expenditure is to be charged: (a) Purchases of supplies, services, personal property and equipment of an estimated value up to five thousand dollars ($5,000) shall be approved by the Purchasing Manager, a Purchasing Agent or a Purchasing Delegate. (b) Purchases of supplies, services, personal property, and equipment of an estimated value up to ten thousand dollars ($10,000) shall also be approved by the Purchasing Manager or a Purchasing Agent. (c) Purchases of supplies, services, personal property and equipment with an estimated value greater than ten thousand dollars ($10,000) and up to forty thousand dollars ($40,000) must receive the approval of the Purchasing Manager or his/her designee. (d) Except as otherwise provided in this Chapter, purchases with an estimated value greater than forty thousand dollars ($40,000) shall be subject to the purchasing procedures outlined in Section 3.24.060, Section 3.24.080 or Section 3.24.090 and approved by the City Council. 3.24.060 PURCHASING PROCEDURE (a) Availability of Funds — Except in emergencies as defined in Section 3.24.070 (a), no notice of award of contract shall be issued, no contract shall be signed and no purchase order shall be issued unless the unexpended appropriation concerned is sufficient to pay the amount of such contract or purchase order. (b) Purchaser Responsibilities - It shall be the responsibility of the Purchasing Manager, Purchasing Agent or Purchasing Delegate handling a purchase: 1. To reduce, to the maximum extent possible, the number of purchase transactions by combining into bulk orders and contracts the requirements of departments or City for common -use items or items repetitively purchased. The use of blanket purchase orders is recommended for vendors that a department uses repeatedly 5 throughout the fiscal year. Blanket purchase orders may not be used for the purchase of Capital Assets. 2. To obtain a completed IRS Form W-9 from any vendor not previously used for City purchases and submit it to the Finance Department. This information must be validated by the Finance Department before any purchases can be made with the new vendor. 3. If a City business license is required, it is the responsibility of the Purchasing Agent to direct the vendor to the Diamond Bar Community Development department in order to obtain the license. 4. Except as otherwise authorized in this Chapter or by State or Federal law, to select the lowest responsible bidder when bids are solicited, whether formal or informal. If the lowest priced bid is not selected, then the decision process must be documented explaining why the lowest bid was not chosen. This provision does not apply to professional service contracts as set forth in 3.24.120. 5. If the item(s) to be purchased is only available through one vendor and/or sole source provider, or when required if three bids could not be obtained, back up documentation verifying that the vendor is the sole source provider must be provided using the "Justification for Sole Source/Sole Brand" form. Unjustified factors for a sole source/sole brand include: i. Personal preference for a product or vendor ii. Cost, vendor performance, local service, maintenance and delivery time (these are award factors in competitive bidding; iii. Lack of advance planning for activity, unless deemed an emergency purchase as referenced in Section 3.24.070 (c) The Purchasing Manager is authorized to prescribe the use of various types of contracts and orders, including, but not limited to the following: 1. Use of petty cash is authorized for single purchases of seventy-five dollars ($75.00) or less. 2. Purchase orders shall be used for all purchases of supplies, services, personal property and equipment in accordance with the following: i. Any single item or aggregate purchase with an estimated value of two thousand five hundred dollars ($2,500) or greater. ii. When the Purchasing Manager, Purchasing Agent or Purchasing Delegate expects to make multiple purchases with a single vendor and purchases are expected to exceed two thousand five hundred dollars ($2,500) annually. 0 (d) In the absence of those exceptions set forth in Section 3.24.070 the following procedures shall be followed with regards to purchases of supplies, services, personal property and equipment: For any single item or aggregate purchase with an estimated value of two thousand five hundred dollars ($2,500) up to five thousand dollars ($5,000) three informal bids or quotes shall be solicited. i. Bids or quotes may be obtained from the vendors in verbal or written format. ii. Written documentation (using the "Quotation Worksheet" form) of the bids and quotes must be submitted with the requisition. 2. For any single item or aggregate purchase with an estimated value in excess of five thousand dollars ($5,000) up to forty thousand dollars ($40,000) three informal bids shall be solicited. i. Bids must be obtained in writing from the vendors. ii. Written documentation (in the form of the "Quotation Worksheet" form) of the bids must be submitted with the requisition. 3. Any single item or aggregate purchase of supplies, services, personal property or equipment with an estimated value of forty thousand dollars ($40,000) or greater (purchased within one fiscal year) must be approved by City Council via the formal bid process outlined in Section 3.24.080. 4. Any Public Project or Public Works Contract with an estimated value of forty thousand dollars ($40,000) or greater (purchased within one fiscal year) must be approved by City Council via the process outlined in Section 3.24.090 5. In determining whether the $40,000 fiscal year threshold for City Council approval has been exceeded, for purchases of supplies, services, personal property or equipment, multiple contracts shall be aggregated on a department basis for the applicable fiscal year. If, in the aggregate, purchases by a single department from a single vendor of supplies, services, personal property or equipment would exceed $40,000 in a fiscal year, the purchase which results in the $40,000 threshold being exceeded shall be approved by the City Council. (e) Professional development and training costs do not require purchase orders. Any travel related costs should also be in accordance with the City's Travel, Expense and Reimbursement Policy. 7 (f) Purchases made with a City credit card may include but are not limited to: 1. Conferences/training/seminars (registration, airline, car rental, hotel accommodations, meals and fuel; 2. Business lunch with representatives from other government agencies or consultant under contract to the City, furnishing lunch for interview panels and/or evaluation review boards; 3. Publications/manuals; 4. Providing meals, equipment and material to work crews in cases of emergencies and 5. Memberships and/or dues to professional organizations. 3.24.070 EXCEPTIONS TO PURCHASING PROCEDURE (a) Emergency Purchases. The emergency procedure applies to purchases made necessary from an emergency situation that poses an immediate threat to public health, welfare or safety as determined by the Purchasing Manager for which no time exists to seek Council action or approval, if such action or approval were otherwise required. . An emergency situation is defined as follows: i. A public disaster; ii. An immediate need to prepare for national or local defense; and iii. A breakdown of machinery or an essential service immediately affecting public health, safety or welfare. 2. The Purchasing Manager, a Purchasing Agent, or any Purchasing Delegate may purchase supplies, services, personal property, or equipment directly subject to parameters set forth in City Council resolution(s) and shall submit a report of the circumstances of the emergency to the Purchasing Manager as soon as possible. The report will be filed with the City Council and will be entered in the minutes of the Council at its next regular meeting. (b) Bidding: Exceptions 1. Purchases of supplies and equipment and contracts, except Public Works Contracts, shall be by bidding procedures pursuant to the provisions of Section 3.24.090. 2. Bidding shall be dispensed with upon authorization of the Purchasing Manager or designee: i. Where bidding would be impossible or impractical; N ii. The amount of the purchase has a total estimated value of less than two thousand five hundred dollars ($2,500); iii. Where the commodity or service can be obtained from only one vendor. When there is only one vendor that provides the product or service, the details must be documented and supported with the form "Justification for Sole Source/Sole Brand" in order to dispense with bidding requirements; or iv. Where the price of the commodity or service is controlled by law such that bidding would be unlikely to result in any cost savings. 3. For the purposes of this Section: i. "Impossible" shall mean extreme and unreasonable difficulty or expense; and ii. "Impractical" shall mean incapable of being performed by the bid procedure. 4. Other Exceptions. When, in the opinion of the Purchasing Manager or Purchasing Agent, supplies, personal property, services or equipment can be more efficiently or more cost efficient obtained if acquired on behalf of the City by the State Department of General Services or other government purchasing program, the Purchasing Manager or Purchasing Agent shall so advise the City Council. Acquisition of any such supplies, materials, personal property or equipment by the State Department of General Services or other government purchasing program may be authorized by resolution of the City Council. 3.24.080 FORMAL BID PROCESS Except as otherwise exempted in this Chapter, supplies, services, equipment and personal property with an estimated value of more than forty thousand dollars ($40,000) shall be purchased using the Formal Bid Process as follows: (a) To initiate the Formal Bid Process, the Purchasing Agent shall provide specifications for the item to be purchased and documentation showing the existence of an unencumbered appropriation for the item in the current approved budget. (b) Formal bids shall be posted at City Hall, on the City's website and in a newspaper of general circulation, and if applicable, in appropriate trade publications. The date of the publication shall be at least 14 days before the due date. The Notice Inviting Bids shall include the requirement that the bid be in writing and be sealed, a general description of the supplies, service personal property or equipment to be purchased, the location where specifications may be obtained, the time and place for opening bids, and the security required, if any. 0 (c) All formal bids shall be sealed and shall be publicly opened and read at the date, time and place indicated in the public notice. (d) Bids shall be reviewed for compliance with the specifications document and all deviations from the specifications shall be fully documented by the requesting Department and the impact of the deviations on performance or suitability of the bid item shall be detailed. (e) Staff shall prepare a staff report with a recommendation to the City Council. (f) Except for certain professional services agreements, the City Council may award the contract to the lowest responsible bidder in conformity with the specifications. (g) When a bid is recommended to be awarded to other than the lowest responsible bidder, written justification is required. The written statement must be included with the staff report to the City Council. (h) Rejection of Bids — the Purchasing Manager or when applicable, the City Council, may, in any given case reject all bids with or without cause and submit the supplies, personal property, equipment or service involved to a new bidding process or may abandon the purchase. (i) This policy specifically prohibits splitting a purchase to circumvent the threshold limits set forth in Section 3.24.060 (d)(3). Q) The purchase must be approved by the City Council. 3.24.090 FORMAL BID PROCEDURES FOR PUBLIC PROJECTS AND PUBLIC WORKS CONTRACTS (a) Bid solicitation procedures. 1. The City Council shall approve plans and specifications for all public projects which are required per applicable laws and regulations. 2. A notice inviting formal bids, stating the time and place for the receiving and opening of sealed bids and distinctly describing the public project, commodity or class of commodities shall be prepared. Every notice inviting bids shall be prepared in accordance with the following requirements: i. The notice shall be published in accordance with the requirements of California Public Contracts Code section 20164, and as that section may be modified. ii. The Purchasing Agent shall, in addition, solicit bids from prospective bidders for the class of commodities being purchased or sold by sending them copies of the newspaper W, notice or such other notice as well as will acquaint them with the proposed purchase. All pending purchases shall also be advertised by posting a copy of the contract bid form on a public bulletin board in City Hall iii. In addition to notice required by this section, the Purchasing Manager, Purchasing Agent or Purchasing Delegate may give such other notice as he or she deems proper. 3. Provisions shall be included in any invitation for bid and in any contract documents for the withholding of retentions earned to ensure performance under a contract in an amount and type as determined by the Director of Public Works, consistent with State law. Provisions shall be included in any invitation for bid and in any contract documents for insurance coverage in an amount, type and term as may be specified by the City. 4. When required by State law, the contractor shall not pay less than the general prevailing rates of wages, as determined by the Director of the Department of Industrial Relations, to all workers employed on a Public Project or Public Works Contract. (b) Formal Bid Opening Procedure. Sealed bids shall be submitted to the City Clerk with the bid number written on the envelope where they will be, date and time stamped. All bids must be received and date and time stamped by the City Clerk's clock on or before the date and time due; late bids will be returned unopened. The City Clerk shall publicly open all bids at the time and place stated in the public notice. A tabulation of all bids shall be available for public inspection in the City Clerk's Office during regular business hours for a period of one year after bid opening (c) The City Council may reject a bid based upon non -responsibility and award to the next lowest responsible bidder if the Purchasing Agent provides notice to the bidder of any evidence reflecting on the bidder's responsibility at least two business days prior to the hearing at which the City Council will be considering whether to reject the bid. The bidder shall have the opportunity to present evidence that the bidder is qualified to perform the contract. (d) Rejection of Formal Bids. In its discretion, the City Council may reject any and all bids presented for any reason. If after the first invitation of bids all bids are rejected, after reevaluating its cost estimates of the project, the City Council may: (a) abandon the project; (b) re -advertise for bids in the manner prescribed by this chapter; or (c) perform the work with City employees, after passing a resolution by a four-fifths vote of the City Council declaring that the project can be performed more economically by City employees. (e) Award of Formal Bid Contracts. All contracts for public works projects with a value exceeding ($40,000) shall require the approval of the City Council 11 and shall be executed by the Mayor and approved as to form by the City Attorney. If a contract is awarded, it shall be awarded by the City Council to the lowest responsible bidder. The determination of the "lowest responsible bidder" shall be at the discretion of the City Council pursuant to the findings and recommendations presented by the Purchasing Agent at the time of award of contract. In determining the lowest responsible bidder, the following may be considered by the City Council, in addition to price: i. The ability, capacity and skill of the bidder to perform the contract or provide the services required; ii. Whether the bidder can perform the contract or provide the services promptly, or within the time specified, without delay or interference; iii. The sufficiency of the bidder's financial resources to perform the contract or provide the service; iv. The ability of the bidder to provide future maintenance and services where such maintenance and service is essential; V. The quality and timeliness of the bidder's performance on previous contracts for the City; vi. Litigation by the bidder on previous contracts with the City; vii. The character, integrity, reputation, judgment, experience and efficiency of the bidder; viii. The bidder is licensed under the Contractors' State License Law (commencing with Section 7000 of the Business and Professions Code of the State of California, as the same may be amended from time to time) to perform the work for which it submitted a bid proposal. (f) Tie Formal Bids. If two or more formal bids received are for the same total amount the City Council may, at its discretion, accept the one it chooses or accept the lowest bid made by and after negotiation with the tie bidders. (g) No Formal Bids. If no bids are received through the formal or informal procedure, the project may be performed by the employees of the City by force account or through a negotiated contract without further complying with this chapter. (h) Bid Selection. If a contract is awarded, it shall be to the lowest responsible bidder. The determination of the "lowest responsible bidder" shall be at the discretion of the City Council pursuant to the findings and recommendations presented by the Purchasing Agent. (i) Nothing contained in this section is intended to be in conflict with applicable state law. 12 3.24.100 ENCUMBRANCE OF FUNDS Except in cases of emergency, the issuing department shall not issue any purchase order for supplies, services, or equipment unless there exists an unencumbered appropriation in the account against which said purchase is to be charged. If, when the purchase order is posted the account appears to be over budget, the Department Director shall create a budget transfer to cover said overage immediately. 3.24.110. CHANGE ORDERS (a) Any substantial change to a contract or approved purchase which results in a cost in excess of the City Council award amount, shall be documented with a change order. If a change order will result in a total contract amount of more than $40,000 or substantially changes the terms or results in a cost in excess of Council award amount plus any Council approved contingencies, the change order must be brought to Council as soon as staff becomes aware as to avoid any delays in the project. No change order may exceed budgetary authorization without Council approval. (b) The Purchasing Manager may approve a change order for contracts approved by the City Council in an amount up to 10% of the contract amount or $40,000, whichever is less. (c) All change orders are subject to the approval authority set forth in section 3.24.050 (c). 3.24.120 PROFESSIONAL SERVICES (a) Use of Requests for Proposals. The formal bid procedures set forth in Section 3.24.080 for Professional Services shall be utilized whenever practical. (b) Guidelines for Selection. Firms or individuals shall be selected based on their ability to perform the specific functions including, but not limited to, such factors as: Overall professional experience, reliability, and continuity of the firm as related to the tasks described in the solicitation for proposals or bids; ii. Professional experience of the firm in executing contracts of a similar nature; iii. Adequacy of personal numbers within specific disciplines required to complete the work required by the solicitation for proposals or bids; 13 iv. Experience and training of key personnel as related to the work described in the solicitation for proposals or bids; V. Adequacy of number of principal(s) which are intended to be assigned to the contract; vi. Knowledge of applicable regulations and technology associated with the contract; vii. Quality and timeliness of recently completed or nearly completed projects which were similar to the work described in the solicitation for proposals or bids; viii. Specialized qualifications for the services to be performed; and ix. Price. Such factors shall be weighed by the acquiring authorized person and by the City department primarily responsible for the project according to the nature of the contract, the needs of the City and complexity and special requirements of the specific contract for which the services will be provided. (c) RFP Procedures. If a formal RFP is used, the following procedures shall apply: A Request for Proposal solicitation document shall be issued to potential individuals or firms. The solicitation document shall discuss the following: i. Scope of work or specification desired. ii. List of any required qualifications. iii. List the evaluation criteria iv. The date of submission for the response by the vendor V. Only criteria disclosed in the solicitations may be used to evaluate the supplies or services proposed. 2. The solicitation document shall be made available to a minimum of three (3) qualified firms or individuals, unless three qualified.firms or individuals cannot be located, and shall be made available for no less than fourteen (14) calendar days. (d) Evaluation of proposals received will be conducted by either an individual or a review committee. Interviews may be conducted, at the discretion of the person authorized to make the purchase, with one (1) or more responsible bidders who has submitted a proposal and is determined to be reasonably susceptible for being accepted for award. These discussions may be held for the purpose of clarification to assure full understanding of responsiveness to the solicitation requirements. (e) Multi -Year Contracts. The total not to exceed amount for the entire term of a multi-year contract shall be the amount untilized in determining the 14 approval authority required under this Chapter. The City Council may authorize the Purchasing Manager to extend the term of such contracts provided the contract provides for such extensions. (f) The Purchasing Manager, Purchasing Agent or Purchasing Delegate shall notify the selected contractor and obtain a written contract to be kept on file with the City Clerk. 3.24,130. TEMPORARY STAFFING PROFESSIONAL AND CONSULTANT SERVICES Proposals for all temporary staffing, professional and consultant services may be obtained pursuant to procedures determined by the Human Resources Department. Selection shall be on the basis of demonstrated competence and on the professional qualifications necessary for the satisfactory performance of the services required. It is not mandatory that a contract for temporary staffing, professional and consultant services be awarded to the lowest bidder when it is believed that the quality of service or technical expertise provided by a higher bidder warrants their selection. Reasons for the selection of any bidder other than the lowest bidders shall be in writing and shall be retained with the record of bids. Section 3.24.140 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 in to consideration the sales tax (one percent) which would be returned to the City as prescribed in this Section. (a) Definition. Whenever used in this section, the phrase "local bidder/vendor" shall mean a business, firm, or enterprise with fixed offices or locally taxable distribution points within the City, which holds a valid business registration issued by the City, and bearing a street address within the City. (b) Local Preference. In awarding purchase orders and contracts for supplies and equipment, the City may grant a preference of one percent (1%) to local bidder/vendors. The bids of all local bidder/vendors shall be reduced by one percent prior to determining the lowest responsible bidder. (c) Identical Bids. If after applying the preference provided for in subsection (b) of this section, identical bids are submitted by a local bidder/vender and a bidder who is not local, the contract shall be awarded to the local bidder/vendor. Identical bids by two or more local bidder/vendors shall be determined by the toss of a coin. In the event City Council approval is 15 required for the bid, this provision shall not apply and the City Council shall award the bid in its discretion. (d) Exceptions. Notwithstanding the foregoing, the provisions of this section shall not apply under any of the following circumstances: When application of the provisions of this section is prohibited by state or federal law or the requirements of a state or federal grant; 2. When a contract with the City to purchase supplies and equipment will be funded in whole or in part by donations or gifts to the City, to the extent that the provisions of this section would conflict with any conditions attached by the donor of the donation, provided that the donation and any conditions attached to it have been accepted and approved by the City Council; 3. When the Purchasing Manager determines that a contract with the City to purchase supplies and equipment results from exigent circumstances, and also determines either that any delay in the execution or performance of the contract would jeopardize the public health, safety, or welfare of the citizens of the City, or that the operational effectiveness of a significant municipal function would be seriously threatened if the contract were not entered into expeditiously. (e) Good Faith Effort to Contact Local Merchants. The City shall make a good faith effort when soliciting bids for supplies or equipment to solicit bids or proposals from local merchants. (f) Purchasing Manager Authorization. The Purchasing Manager, or his or her designee, may promulgate rules and regulations to implement the provisions of this section. (g) Enforcement and Penalties. In the event that the Purchasing Manager, or his or her designee, makes a finding that a bidder for a contract has made an intentional misstatement in order to obtain a local merchant preference under regulations adopted pursuant to this section, the bidder may be subject to any remedy available to the City at law or equity. A finding by the Purchasing Manager, or his or her designee, that a bidder for a contract has made an intentional misstatement in order to obtain a local merchant preference shall be regarded by the City Council as a basis for determining whether the bidder is a responsible bidder for the present contract or for future contracts. 16 2. A bidder who has been disqualified as a responsible bidder by a determination of the City Council, based on a finding by the Purchasing Manager, or his or her designee, that the bidder made an intentional misstatement in order to obtain a local merchant preference, shall be disqualified from bidding on all contracts with the city for a period of not less than one year from the date of the disqualification, as determined by the City Council. Section 3.24.150 USE OF RECYCLED MATERIALS All departments shall purchase and use recycled products and recycled materials when available unless determined by the City Manager to be financially infeasible. The City may at its option require its contractors and consultants to use recycled products in fulfilling contractual obligations Section 3.24.160 SURPLUS PERSONAL PROPERTY Each department shall periodically review its equipment and inventory and complete a surplus property list for items deemed surplus or have become obsolete or worn out. The completed list shall be submitted to the Purchasing Managers office. A copy of the list shall also be given to the Finance Department in order to remove any items on the fixed asset inventory list. (a) Trade in. The Purchasing Manager or designee shall have the authority to exchange for or trade in on new equipment surplus personal property. (b) Sale. The Purchasing Manager shall have the authority to dispose of surplus personal property by auction, sealed bids, for scrap or negotiated sale, whichever in the Purchasing Manager's judgment will provide the maximum return to the City. (c) Disposed as trash. When the cost of locating a buyer exceeds the estimated sale price of surplus personal property or the item is obsolete or worn 66t or of minimal value, the Purchasing Manager may recycle, destroy or dispose of the item as trash. (d) Disposed as gifts. The Purchasing Manager subject to the approval of the City Council may give surplus personal property to another public agency or special district such as a school district or library. 17 Section 2. 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 21 f-_ day of o . n er 12014. Mayor I, Tommye Cribbins, the 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, California, held on the 7th day of October, 2014, and was finally passed at a regular meeting of the City Council of the City of Diamond Bar, held on the 21st of October, 2014, by the following vote: AYES: COUNCIL MEMBERS: Chang, Lyons, Tanaka, MPT/Tye, M/Herrera NOES: COUNCIL MEMBERS: None ABSENT: COUNCIL MEMBERS: None ABSTAINED: COUNCIL MEMBERS: None ATTEST:✓ Tommy6 Cribbins, City Clerk City of Diamond Bar it.]