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HomeMy WebLinkAbout79-10 Revising Purchase LimitationsORDINANCE NO. *7q- /0 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF COSTA MESA, AMEND- ING SECTIONS 2-170, 2-173, 2-174 OF THE COSTA MESA MUNICIPAL CODE, REVISING PURCHASE LIMITATIONS. THE CITY COUNCIL OF THE CITY OF COSTA MESA DOES HEREBY ORDAIN AS FOLLOWS: SECTION 1: The City Council of the City of Costa Mesa finds and declares that existing purchase limitations for emer- gency purchases, open market and formal bid maximums were established by the City Council in 1972; that the purchase limita- tions .for order books or small purchase orders were established in 1958. It further finds and declares that the prices of goods and services, including those required for the routine operation and maintenance of the City, have risen dramatically since the purchase limitations were last revised. It further finds and declares that increasing the purchase limitations is authorized by §37902 of the California Government Code.and may be implemented by this ordinance and a separate Resolution revising the purchase limitations for order books or small purchase orders. The City Council further finds and declares that increasing the purchase limitations will: assist in reducing the amount of staff time required for routine purchases; attract a wider range of compan- ies wishing to do work for the City with attendant advantages to the City devolving from such greater competition; expedite the completion of various activities carried out by City Staff by reducing administrative delays, thus freeing staff time to be spent in direct administration of activities. Accordingly, Sections 2-170, 2-173, and 2-174 of the Costa Mesa Municipal Code are hereby amended to read as follows: SECTION 2: ".§2-170. Bidding Required. Purchase of supplies, services, equipment and the sale of personal property shall be by bid procedures pursuant to sections 2-172 and 2-174, except bidding so shall be dispensed with when an emergency requires that an order be placed with the nearest available source of supply, when the amount involved is less than one thousand ($1,000.00) dollars, or when the commodity can be obtained from only one vendor. §2-173. Procedure for purchases exceeding five. thousand dollars. Except as otherwise provided herein, purchases and contracts for supplies, services, equipment and the sale of personal property of estimated value greater than five thousand ($5,000.00);dollars shall be by written contract with the lowest or highest responsible bidder, as the case may be, pursuant to the following procedure: (a) Notice inviting bids. Notices inviting bids shall include a general description of the articles to be purchased or sold, shall state where bid blanks and speci- fications 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, or if there is none, it shall be posted in at least three (3) pub- lic places in the city that have been designated as, the places for posting public notices,. (2) Bidders' list: The purchasing officer shall also solicit sealed bids from all responsible prospec- tive suppliers whose names are on -2- the bidders' list or who have re- quested their names to be added thereto.. (3) Bulletin board: The purchasing officer shall also advertise, pend- ing purchases or, sales, by a notice posted on.a public bulletin board in the city hall. (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 his bid security upon refusal or failure to execute the contract within (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) Bid opening procedure. Sealed bids shall be submitted to the purchasing officer and shall be identified as bids on the 'envelope. Bids shall be opened in the public at the time and place stated'in the public notices. A tabula- tion of all bids received shall be open for public inspection during regular business hours for a period:of not less than thirty. (30) calen- dar days after the bid opening. -3- (d) Rejection.of bids. In its discretion, the city council may reject any and all bids and re -advertise for bids. (e) Award of contracts. Contracts shall be awarded by the city council to the lowest responsible bidder except as otherwise provided herein. (f) Tie bids. If two (2) or more 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 re -advertising for bids, the city council may accept the one it chooses or accept the lowest bid made.by negotiation with the tie bidders at the time of the bid opening. (g) Performance bonds. The city council shall have authority to require a performance bond before entering a contract in such amount as it,;shall find reasonably necessary to protect the best interests of the city. If the city council requires a performance bond, the form and amount of the bond shall be described in the notice inviting bids. §2-174. Open market.procedure. Purchases of supplies, equipment, contractual services and sales of personal property of an estimated value in _the amount of five. thousand ($5-,000.00) dollars 'or less, and.in the case of public works projects in the amount of five thousand ($5,000.00) dollars or less, may be made by the purchasing officer in the open mar;; ket as follows without observing the procedure prescribed in.sec.tion 2-173: (a) Minimum number of bids. Open market purchases shall, wherever possible, be based.on at least three (3) bids, and shall be awarded to the -4- lowest responsible bidder. (b), Notice inviting bids. The purchasing offi- cer shall solicit bids by written requests to prospective vendors, by telephone and by public notice posted on a public bulletin board in the City Hall. (c) Written bids. Sealed written bids shall be submitted to the purchasing officer who shall keep a record of all open market orders and bids for a period of one year after the sub- mission of bids or the placing of orders. This record, while so kept, shall be open to public inspection." SECTION 3: This ordinance shall take effect and be in full force and effect thirty (30) days from and after its passage, shall be published once in the Orange Coast Daily Pilot, a newspaper of general circulation printed and published in the City of Costa Mesa, together with the names of the members of the City Council voting for and against the same. PASSED AND ADOPTED this 16th day of July, 1979. Vice Mayor of the City -6 Costa Mesa ATTEST: T. 4U, -!W - Deputy fiity Clerk of the City of Cos Mesa -5- APPROVED AS TO FORM. CITY ATTORNEY. STATE OF CALIFORNIA ) COUNTY OF ORANGE ) SS CITY OF COSTA MESA ) I, EILEEN P. PHINNEY, City Clerk and ex -officio Clerk of the City Council of .the City of Costa Mesa, hereby certify that the above and foregoing Ordinance No. 79-10 was intro- duced and considered -section by section at a regular meeting of said City Council held on the 2nd day of July, 1979, and thereafter passed and adopted as a whole at a regular meeting of said City Council held on the 16th day of July, 1979, by the following roll call vote: AYES: Council Members: Schafer, Raciti, Hall NOES: Council Members: None ABSENT: Council Members: McFarland, Hertzog IN WITNESS WHEREOF, I have hereunto set my hand and affixed the Seal of the City of Costa Mesa this 17th day of July, 1979. Ci y Clerk and ex -officio Cle -of the, City Council of the City --of GZsta Mesa:: - By: _ Deputy ity Clerk , cm