HomeMy WebLinkAbout96-15 Amending Code Pertaining to Purchasing SystemORDINANCE NO. 96- /b
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
COSTA MESA, CALIFORNIA, AMENDING ARTICLE 2 OF
CHAPTER V OF TITLE 2 OF THE COSTA MESA MUNICIPAL
CODE PERTAINING TO THE PURCHASING SYSTEM OF
THE CITY OF COSTA MESA.
THE CITY COUNCIL OF THE CITY OF COSTA MESA DOES HEREBY ORDAIN
AS FOLLOWS:
Section 1. Article 2 of Chapter V of Title 2 of the Costa Mesa Municipal Code
is hereby amended to read as follows:
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Sec. 2-162. Purchasing System, Purchasing Officer, Powers and Duties.
(a) A purchasing system is hereby established for the purpose of
setting forth efficient procedures for the purchase of supplies, services
and equipment, to secure for the City supplies, services and equipment
` at the lowest possible cost commensurate with quality needed, to
exercise positive financial control over purchases, to clearly define
authority for the purchasing function and to assure the quality of
purchases.
(b) A Purchasing Division of the Finance Department is hereby created
and authorized to purchase supplies, services and equipment for the City
government, department or agency.
(c) A position of Purchasing Officer is hereby created and shall -be
appointed by the City Manager. The Purchasing Officer may delegate
purchasing duties.
(d) Except as provided by this Code, no City officer or employee shall
order the purchase of any supplies, equipment, materials, or contractual
services, or make any contract within the purview of this Code, other
than in accordance with the provisions of this Code, the regulations and
procedures established by the City Manager and with the approval of the
Purchasing Officer. Any purchase or contract made contrary to this Code
shall be null and void.
(e) The Purchasing Officer shall be the head and have general
supervision of the Purchasing Division. The duties of Purchasing Officer
may be combined with those of any other officer or position.
(f) The Purchasing Officer shall have the powers and duties as
follows:
(1) Purchase or contract for supplies,. services and
equipment required by any City department or agency in
accordance with purchasing procedures prescribed by this
Article, such administrative regulations as the Purchasing
Officer shall adopt for the internal management and
operation of the Purchasing Division and such other rules,
regulations or purchasing manual as shall be prescribed by
the City Manager and resolution of City Council.
(2) Negotiate and recommend execution of contracts for
the purchase of supplies, services and equipment.
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(3) Act to procure for the City the needed quality in
supplies, services and equipment at the least expense to the
City.
(4) Utilize vendor sourcing to obtain as full and open
competition as possible on all purchases.
(5) Prepare and recommend to the City Council rules
governing the purchase of supplies, services and equipment
for the City.
(6) Prepare and recommend to the City Council revisions
and amendments to the purchasing rules.
(7) Keep informed of current developments in the field of
purchasing, prices, market conditions and new products.
(8) Prescribe and maintain such forms as are reasonably
necessary to the operation of this article and other rules and
regulations.
(9) Supervise the inspection of all supplies, services and
equipment purchased to ensure conformance with
specifications.
(10) Recommend 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 City department or agency or which have
become unsuitable for City use.
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(1 1) Maintain a bidder's list, vendor's catalog file and
records. needed for the efficient operation of the Purchasing
Division.
(12) Such other powers as established by rules,
regulations or purchasing manual as prescribed by the City
Manager and resolutions of City Council.
Sec. 2-163. Exemptions from the Purchasing System.
The Purchasing Officer, with approval of the City Council, may authorize any
City department or agency in writing to purchase or contract for specified supplies,
services and equipment independently of the Purchasing Division, but the Purchasing
Officer shall require that such purchases or contracts be made in conformity with the
procedures established by this Article, and shall further require periodic reports from
the City department or agency on the purchases and contracts made under such
written authorization.
Sec. 2-164. Requisitions, Annual Estimate of Purchase Orders,
and Fund Requirements.
(a) All City departments or agency shall submit requests for supplies,
services or equipment to the Purchasing Officer by standard requisition
forms.
(b) All City departments or agency shall file, on an annual basis as part
of the annual budget, detailed estimates of their requirements in supplies,
services and equipment in such manner as required by the Purchasing
Officer, with the approval of the City Manager.
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(c) All purchases of supplies, services and equipment shall be made
by a purchasing document to the Purchasing Officer.
(d) Except as otherwise provided herein, the Purchasing Officer 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.
Sec. 2-165. Bidding Required, Exceptions.
(a) Purchase of supplies, services, equipment and the sale of personal
property shall be by bid procedures as set forth in Sections 2-166, 2-167
and 2-168.
(b) Notwithstanding subsection (a), bidding procedures for the
purchases of supplies, services and equipment shall not apply to the
following situations:
(1) An emergency requires that an order be placed with
the nearest available source of supply;
(2) The amount involved is less than five thousand
dollars ($5,000.00);
(3) The commodity or service can be obtained from only
one vendor; or
(4) Professional services contracts for accountants,
attorneys, architects, engineers, surveyors, and
construction managers subject to sections 4526-4529.5
3'110 3
and 81793 of the Government Code.
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Sec. 2-166. Procedure for Purchases Exceeding Twenty -Five
Thousand Dollars ($25,000.00).
Except as provided in this Article, purchases of supplies, services, equipment
and the sale of personal property of estimated value greater than twenty-five thousand
dollars ($25,000.00) shall be by written contract pursuant to the following procedures:
(a) Notice of 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, 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.
(2) Bidder's Lista 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.
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(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) Bid Opening Procedure. Sealed bids shall be submitted to the City
Clerk and shall be identified as bids on the envelope. It is the
responsibility of the bidder to ensure receipt of the bid document by the
City Clerk by the designated hour. Bids shall be opened in public at the
time and place stated in the public notice. A tabulation of all bids
received shall be open for public inspection during regular business hours
for a period of not less than thirty (30) calendar days after the bid
opening.
(d) Rejection of Bids. With discretion, the Purchasing Officer may
recommend to the City Manager, the rejection of any and all bids and
readvertise for bids.
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(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 readvertising 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
into 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.
(h) Public Project Supplies and Materials. Per Government Code
section 20161, purchases of supplies and materials for public projects
of an estimated value of five thousand dollars ($5,000.00) or greater
shall be by written contract with the lowest responsible bidder pursuant
to this section. A public project is defined as:
(1) A project for 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; or
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(3) Street or sewer work, including maintenance or
repair.
(i) When in the best interest of the City, and when necessary to
adhere to time lines 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 $25,000
which were exempted from the formal bid process.
Sec. 2-167. Open Market Procedure.
Except as provided in this Article, purchases of supplies, equipment, contractual
services and sales of personal property of an estimated value in the amount of twenty-
five thousand dollars ($25,000.00) or less, and in the case of public works projects
in the amount of five thousand dollars ($5,000.00) or less, may be made by the
Purchasing Officer in the open market as follows without observing the procedure
prescribed in section 2-166:
(a) Minimum number of bids. Open market purchases shall, whenever
possible, be based on at least three (3) bids and shall be awarded to the
lowest responsible bidder.
(b) Request for bids. The Purchasing Officer shall solicit bids by
written requests, telephone, facsimile or electronic mail, to prospective
vendors, and by public notice posted on a public bulletin board in City
Hall.
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(c) Written bids. 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 submission of bids or the placing of orders.
This record, while so kept, shall be open to public inspection.
Sec. 2-168. Bid Award Appeal Procedure.
(a) Any bid with the value in excess of five thousand dollars
($5,000.00), but under twenty-five thousand dollars ($25,000.00), may
be appealed in accordance with the following procedure:
(1) The Purchasing Agent or Purchasing Officer shall post
a "letter of intent to award bid" on the public bulletin board
located in the first floor of City Hall three (3) working days
prior to awarding any informal competitive bid.
(2) An appellant shall file a written notice of appeal to
any "letter of intent to award bid" in accordance with the
following procedures:
(A) The written notice of appeal shall be
filed with the Purchasing Officer prior to bid
award.
(B) The written notice of appeal must
include specifics as to the nature of the
appeal.
(C) The appellant must provide any and all
documentation to support the appeal.
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(D) The Purchasing Officer will respond in
writing to the appellant within five (5) working
days.
(E) In the event the appeal is denied by the
Purchasing Officer, the appellant may appeal
the Purchasing Officer's ruling to the City
Council at the next available Council meeting.
(b) Any appeal to City Council shall comply with the requirements of
Chapter IX of this Title.
Sec. 2-169. Inspection and Testing.
(a) The Purchasing Officer or the City department or agency 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 Officer` 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.
(b) Any supplies, equipment or services not in conformance with the
specifications in the order or contract may be rejected by the Purchasing
Officer.
Sec. 2-170. Disposition of Surplus Supplies and Equipment.
(a) All City departments shall submit to the Purchasing Officer, at
such times and in such form as the Purchasing Officer shall prescribe,
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reports showing all supplies and equipment which are no longer needed
or which have become obsolete or worn out. The Purchasing Officer
shall have authority to sell all supplies and equipment which cannot be
used or which have become unsuitable for City use, or to exchange the
same for, or trade in the same on,, new supplies and equipment. Such
sales shall be made pursuant to section 2-166, or section 2-167,
whichever is applicable. If there, are no bids, the property may be sold at
private sale.
(b) The amount received for any property sold pursuant to this Code
shall be deposited in the General Fund or other fund so designated by the
Purchasing Officer.
(c) Except as provided by State Code, the Purchasing Officer shall
determine the disposition of unclaimed or abandoned property in the
possession of the Police Department.
Sec. 2-171. Rules and Regulations for Purchasing.
(a) Purpose. The purpose of these rules are to facilitate efficient
and economical administration of the Purchasing system of the City.
(b) Definitions. The following terms, whenever used in this Article,
shall be construed as follows:
(1) City Department or agency. Any department,
agency, commission, bureau or other unit of the City
government which derives its support wholly or in part from
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the City or an entity associated with the City for which
separate financial statements are required.
(2) Bidders List. A current file of sources of supply
of articles for each category of commodities or services
repetitively purchased for City use.
(3) Services. Any and all services including but not
limited to the repair or maintenance of equipment,
machinery and other City owned or operated property, and
other technical services. The term does not include public
works projects or services rendered by City officers or
employees, or professional services exempt pursuant to
section 2-165 and other contractual services which are in
their nature unique or not subject to competition.
(4) Lowest Responsible Bidder. In addition to price,
the "lowest responsible bidder" will be determined after the
following factors have been considered:
(A) The ability, capacity and skill of the bidder to
perform the contract or provide the service required,
(B) The bidder has the facilities to perform the
contract or provide the service promptly, or within
the time specified, without delay or interference;
(C) The character, integrity, reputation, judgment,
experience and efficiency of the bidder;
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(D) The bidder's record of performance of previous
contracts or services;
(E) The previous and existing compliance by the
bidder with laws and ordinances relating to the
contract or service;
(F) The sufficiency of the financial resources and
ability of the bidder to perform the contract or
provide the service;
(G) The quality, availability and adaptability of the
bidder's supplies, equipment or services to the
particular use required.
(H) The ability of the bidder to provide future
maintenance and service called for or necessary to
successfully complete the contract;
(1) The number and scope of conditions attached
to the bid.
(5) Responsible Bid. An offer submitted by a
responsible bidder to furnish supplies, equipment or services
in conformity with the specifications, delivery terms and
conditions and other requirements included in the invitation
for bids.
(6) Responsible Bidder. A bidder who submits a
responsible bid and who is not only financially responsible,
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but is possessed of the resources, judgment, skill, ability,
capacity, and integrity requisite and necessary to perform
the contract according to its terms and as set forth in
paragraph (4) of this subsection.
(7) Purchases. Purchases of supplies, equipment,
personal property, and services shall include leases or
rentals as well as transactions by which the City acquires
ownership.
(8) Supplies and Equipment. Any and all articles, things
or personal property furnished to or used by the City
department or agency.
(9) Vendor Sourcing. Lists of known vendors for
services, supplies and equipment maintained by the
Purchasing Officer.
(c) Emergency Purchases.
(1) Conditions. While- the need for occasional emergency
purchases is recognized, the practice must be curtailed as much as
possible by anticipating needs so that the normal purchasing
procedure utilizing bidding may be used. An emergency shall be
deemed to exist if:
(A) There is a great public calamity.
(B) There is immediate need to prepare for national or
local defense.
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(C) There is a breakdown in machinery or an essential
service which requires the immediate purchase of supplies
or services to protect the public health, welfare and safety.
(D) An essential departmental operation affecting the
public health, welfare and safety would be greatly hampered
if the prescribed purchasing procedure would cause an
undue delay in procurement of the needed item or service.
(2) By Purchasing Officer. In case of an emergency which
requires immediate purchase of supplies, equipment or services,
the City Manager may authorize the Purchasing Officer to secure,
by open market procedure, as prescribed in section 2-167, at the
lowest obtainable price, any supplies, equipment or services
regardless of the amount of the expenditure.
(3) By Department Head. In case of an emergency which
requires immediate purchase of supplies, equipment or services,
the head of any department may, with approval of the Purchasing
Officer or the Purchasing Agent, purchase directly any supplies,
equipment or services in the amount of $5,000.00 or less. - The
head of such department shall, not later than the next regular
business day thereafter, submit to the Purchasing Officer a
requisition, a tabulation of bids received, if any, a copy of the
delivery record and a full written report of the circumstances of
the emergency.
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(4) Purchases Over Five Thousand Dollars ($5,000.00). In case
of an emergency which requires immediate purchase of supplies,
equipment or services in, an amount of five thousand dollars
($5,000.00) or more, the City Manager may authorize the
department head to purchase directly any supplies, equipment or
services, provided a full report of the circumstances of all
emergency purchases in excess of five thousand dollars
($5,000.00) shall be filed by the Purchasing Officer.
(d) Gifts and Rebates. The Purchasing Officer and every officer and
employee of the City are expressly prohibited from accepting, directly or
indirectly, from any person, company, firm or corporation to which any
purchase order or contract is, or might be awarded, any rebate, gift,
money, or anything of value whatsoever as set forth in Chapter X of this
Title.
Sec. 2-172. Professional Services.
In procuring professional services, all City departments are to comply with the
3,11 o3
provisions of sections 4526-4529.5 and ';31:70a of the Government Code, the
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Administrative Regulations by the City Manager, and the purchasing manual of the
Purchasing Officer or other policies adopted by resolution of City Council. All persons
or entities to render professional services to the City shall render such services
pursuant to a professional services agreement in a form approved by the City Attorney.
All persons or entities under agreement with the City to render professional services
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shall not be subject to Chapter VI of this Title and shall be considered independent
contractors and not an employee of the City.
Sec. 2-173 - 2-182. Reserved.
Section 2. Publication.
This Ordinance shall take effect and be in full force and effect thirty (30) days
from and after its passage and, before the expiration of fifteen (15) days after its
passage, shall be published once in the NEWPORT BEACH -COSTA MESA PILOT, a
newspaper of general circulation printed and published in the City of Costa Mesa, or,
in the alternative, the City Clerk may cause to be published a summary of this
Ordinance and a certified copy of the text of this Ordinance shall be posted in the
office of the City Clerk five (5) days prior to the date of adoption of this Ordinance,
and within fifteen (15) days after adoption, the City Clerk shall cause to be published
the aforementioned summary and shall post in the office of the City Clerk a certified
copy of this Ordinance together with the names of the members of the City Council
voting for and against the same.
PASSED AND ADOPTED this= day of A&990c-Q,c-P�, 1996.
/_Ma9*39
Deputy ��y Clerk
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Mayor
APPROVED AS TO FORM:
Gity A�iorne '
STATE OF CALIFORNIA )
COUNTY OF ORANGE ) ss
CITY OF COSTA MESA )
I, MARY T. ELLIOTT, Deputy City Clerk and ex -officio clerk of the Cjty Council
of the City of Costa Mesa, hereby certify that the above and foregoing Ordinance No.
96-1S'was introduced and considered section by section at a regular meeting of said
City Council held on the day of )-to-7f, 1996, and thereafter passed and
ad pted as a whole at a regular meeting of said City Council held on the a:day of
&, 1996, by the following roll call vote:
AYES: I� li r=A �Y) b�tJA flA�
NOES:
ABSENT: /U 0 f 5 -
CR e Kso A) f (2ootq ld
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the Seal of the
City of Costa Mesa this 3''-kday of Jjt&,,.t,6iA,,1, 1996.
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1.
Deputy Cit lerk and ex -officio
Clerk of the City Council of the
City of Costa Mesa