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Home My WebLink About2021-15 - AMENDING ARTICLE 2 (PURCHASING) OF CHAPTER V (FINANCE) OF TITLE 2 (ADMINISTRATION)ORDINANCE NO.2021-15 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF COSTA MESA, CALIFORNIA, AMENDING ARTICLE 2 (PURCHASING) OF CHAPTER V (FINANCE) OF TITLE 2 (ADMINISTRATION) WHEREAS, pursuant to California Government Code sections 54201 through 54203, local agencies are required to adopt, by ordinance, policies and procedures, including procurement regulations, governing the procurement of supplies, equipment, goods and services by the local agency; and WHEREAS, the City of Costa Mesa ("City") adopted such policies and procedures via Ordinance No. 20-01 in 2020, codified at Article 2 (Purchasing) of Chapter V (Finance) of Title 2 (Administration) of the Costa Mesa Municipal Code ("Municipal Code"); and WHEREAS, the code currently requires approval from the City Council for contracts with an annual value greater than fifty thousand one dollars ($50,001); and WHEREAS, adjusting the approval limit of the City Manager will increase efficiencies, enhance the City's timely response to City Council and community priorities, and reduce the administrative burden of processing contracts for routine items; and WHEREAS, the City Council also desires to increase staff productivity, responsiveness and efficiency by amending the City Council approval for contracts with an annual value greater than one hundred thousand one dollars ($100,001); and WHEREAS, the City Council desires to amend Article 2 of Chapter V of Title 2 of the Municipal Code in order to increase the approval limit and make other changes as set forth herein; and WHEREAS, all legal prerequisites prior to the adoption of this Ordinance have occurred. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF COSTA MESA DOES HEREBY ORDAIN AS FOLLOWS: Section 1. TITLE 2 ADMINISTRATION, CHAPTER V. FINANCE, ARTICLE 2. PURCHASING Section 2-167. Formal bidding procedures, is hereby amended to read as follows: Except as provided in this article, purchases of supplies, services, equipment and the sale of personal property of estimated value of fifty thousand one dollars ($50,001) or more shall be by written contract pursuant to the following procedures: a) Notice inviting bids. Notices inviting bids shall include a general description of the articles to be purchased or sold, state where bid blanks and specification may be secured, and the time and place for opening bids. 1) Published notice. Notice inviting bids shall be published at least ten (10) days before the date of opening of the bids. Notice shall be published at least once in a newspaper of general circulation, printed and published in the city, city's website and/or procurement platform, or if there is none, it shall be posted in at least one (1) public place in the city that has been designated as the place for posting public notices. Ordinance No. 2021-15 Page 1 of 4 2) Bidder's list. The purchasing officer shall also solicit sealed bids from all responsible prospective suppliers whose names are on the bidder's list and other qualified suppliers. 3) Bulletin board. The purchasing officer shall also advertise pending purchases or sales, by a notice posted on a public bulletin board in the city hall and on the city's website. b) Bidder's security. When deemed necessary by the purchasing officer, bidder's 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 the bid security upon 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 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 responsible bidder. If the city council awards the contract 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. c) Rejection of bids. purchasing officer may recommend to the city manager the rejection of any and all bids and readvertisement for bids. d) Notice of intent to award. The purchasing agent or purchasing officer shall post a "notice of intent to award" on the public bulletin board located in the first floor of city hall fifteen (15) working days prior to awarding any formally bid contract or purchase order. (e) Award of contracts. Contracts shall be awarded to the lowest responsible bidder. Contracts with an annual value greater than one hundred thousand one dollars ($100,001) shall be awarded by the city council. (f) Performance bonds. The city shall have authority to require a performance bond before entering into a contract in such amount as it finds reasonably necessary to protect the best interests of the city. If the city requires a performance bond, the form and amount of the bond shall be described in the notice inviting bids. (f) When in the best interest of the city, and when necessary to adhere to timelines established by other agencies, the purchasing officer may recommend to the city manager to bypass the formal bid process for the purchase of surplus property. City council will be advised by the purchasing officer, or city manager, of procurements over ($50,001) which were exempted from the formal bid process. Section 2. Environmental Compliance. This Ordinance has been reviewed for compliance with the California Environmental Quality Act (CEQA), the CEQA Guidelines, and the City's environmental procedures, and has been found to be exempt pursuant to Section 15061(b)(3) (General Rule) of the CEQA Guidelines because it can be seen with certainty that there is no possibility that the passage of this Ordinance will have a significant effect on the environment. Section 3. Inconsistencies. Any provision of the Costa Mesa Municipal Code or appendices thereto inconsistent with the provisions of this Ordinance, to the extent of such inconsistencies and no further, is hereby repealed or modified to that extent necessary to effect the provisions of this Ordinance. Ordinance No. 2021-15 Page 2 of 4 Section 4. Severability. If any section, subsection, sentence, clause, phrase or portion of this Ordinance is for any reason held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Ordinance. The City Council of the City of Costa Mesa hereby declares that it would have adopted this Ordinance and each section, subsection, sentence, clause, phrase, or portion thereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses, phrases or portions be declared invalid or unconstitutional. Section 5. Effective Date. This Ordinance shall take effect thirty (30) days after its final passage. Section 6. Certification. The City Clerk shall certify to the passage and adoption of this Ordinance and shall cause the same to be published or posted in the manner required by law. Ordinance No. 2021-15 Page 3 of 4 PASSED AND ADOPTED this 5th day of October, 2021. ATTEST: Brenda Green, y Clerk STATE OF CALIFORNIA ) COUNTY OF ORANGE ) ss CITY OF COSTA MESA ) John Step ens, ay APPROVED AS TO FORM: Kimberly I-WI1 Barlow, City Attorney I, BRENDA GREEN, City Clerk of the City of Costa Mesa, DO HEREBY CERTIFY that the above and foregoing Ordinance No. 2021-15 was duly introduced for first reading at the regular meeting of the City Council held on the 21st day of September, and that thereafter, said Ordinance was duly passed and adopted at the regular meeting of the City Council of the City of Costa Mesa held on the 5th day of October, 2021, by the following roll call vote, to wit: AYES: COUNCILMEMBERS: CHAVEZ, GAMEROS, HARLAN, HARPER, REYNOLDS, MARK, AND STEPHENS. NOES: COUNCILMEMBERS: NONE. ABSENT: COUNCILMEMBERS: NONE. IN WITNESS WHEREOF, I have hereby set my hand and affixed the seal of the City of Costa Mesa this 6th day of October, 2021. (MIDI 1� Brenda Green, ity Clerk Ordinance No. 2021-15 Page 4 of 4