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HomeMy WebLinkAbout91-04 - Amending Code Regarding Purchasing RegulationsORDINANCE NO. 91 - AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF COSTA MESA, CALIFORNIA, AMENDING ARTICLE 2, CHAPTER V, TITLE 2, OF THE COSTA MESA MUNICI- PAL CODE REGARDING PURCHASING REGULATIONS. 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 as follows: WHEREAS, existing purchase limitations for emergency purchases, open market and formal bid maximums were established by the City Council in 1972 and amended in 1979. WHEREAS, 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. WHEREAS, increasing the purchase limitations within the Costa Mesa Municipal Code is authorized by Section 59202 of the California Government Code and may be implemented by this ordi- nance. WHEREAS, increasing the purchase limitations will be of a public benefit by: 1) reducing the amount of staff time required for routine purchases; 2) expediting the completion of various activities carried out by City staff by reducing administrative delays; and 3) thus freeing staff time to be spent in direct administration of activities. ACCORDINGLY, the City Council of the City of Costa Mesa herewith amends Chapter V, Title II of the Costa Mesa Municipal Code as follows: SECTION 2: Section 2-163 of the Costa Mesa Municipal Code is hereby amended to. read as follows: "Sec. 2-163. Centralized Department Created. There is hereby created a centralized purchasing division in which is vested authority for the purchase of supplies, services and equipment. 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 then in accordance with the provisions of this code, the regulations and procedures estab- lished thereunder and with the approval of the purchas- ing officer. Any purchase or contract made contrary to this code shall be null and void." SECTION 3: Section 2-164 of the Costa Mesa Municipal Code is hereby amended to read as follows: "Sec. 2-164. Position of Purchasing Officer Created; Appointment There is hereby created the position of purchasing officer. The purchasing officer shall be appointed by the city manager. The purchasing officer may delegate purchasing duties to the purchasing agent." SECTION 4: Section 2-165 of the Costa Mesa Municipal Code is hereby amended to read as follows: "Sec. 2-165. Supervision of Division; Combining Posi- tions. The purchasing officer shall be the head and shall have general supervision of the purchasing division. The duties of purchasing officer may be combined with those of any other office or position." SECTION 5: Subsections (a) and (k) of Section 2-166 of the Costa Mesa Municipal Code are hereby amended to read as follows: "(a) Purchase or contract for supplies, services and equipment required by any using agency in accor- dance with purchasing procedures prescribed by this article, such administrative regulations as the purchasing officer shall adopt for the internal management and operation of the pur- chasing division and such other rules and regu- lations as shall be prescribed by the city council or city manager." "(k) Maintain a bidders' list, vendor's catalog file and records needed for the efficient operation of the purchasing division." 3 SECTION 6: Section 2-167 of the Costa Mesa Municipal Code is hereby amended to read as follows: "Sec. 2-167 Exemptions from Centralized Purchasing. The purchasing officer, with approval of the city council, may authorize any 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 agency on the purchases and contracts made under such written authorization." SECTION 7: Section 2-170 of the Costa Mesa Municipal Code is hereby amended to read as follows: "Sec. 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 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 five thousand dollars ($5,000.00), or when the commodity can be obtained from only one vendor." 4 SECTION 8: Section 2-173 of the Costa Mesa Municipal Code is hereby amended to read as follows: "Sec. 2-173. Procedure for Purchases Exceeding Twenty - 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 twenty-five thousand dollars ($25,000.00) shall be by written contract with the lowest or highest respon- sible 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 specifications 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 5 designated as the place for posting public notices. (2) Bidders' list: The purchasing officer shall also solicit sealed bids from all responsible prospective suppliers whose names are on the bidders' list or who have requested their names to be added thereto. (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. (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 respon— sible bidder. If the city council awards the contract to the next lowest bidder, the amount of the lowest bidder's security shall be applied C 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 identi- fied as bids on the envelope. It is the respon- sibility 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 notices. 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 pur- chasing officer may recommend to the city mana- ger the rejection of any and all bids and read- vertise 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 inter- est 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 negoti- ation 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. (h) Public project supplies and materials. Per State of California Government Code Section 20161, purchases of supplies and materials for public projects of an estimated value of five thousand dollars ($5,000) or greater shall be by written contract with the lowest responsible bidder pursuant to Section 2-173. 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 3) Street or sewer work, including maintenance or repair." SECTION 9: Section 2-174 of the Costa Mesa Municipal Code is hereby amended to read as follows: "Sec. 2-174. Open Market Procedure. 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 2-173. (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 lowest responsible bidder. (b) Notice inviting bids. The purchasing officer shall solicit bids by written requests to pro- spective 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 submission of 4 bids or the placing of orders. This record, while so kept, shall be open to public inspec- tion." SECTION 10: Section 2-175 of the Costa Mesa Municipal Code is hereby amended to read as follows: "Sec. 2-175. Inspection and Testing. The purchasing officer shall inspect supplies and equipment delivered and contractual services performed to determine 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." SECTION 11: Section 2-176 of the Costa Mesa Municipal Code is hereby amended to read as follows: "Sec. 2-176. Disposition of Surplus Supplies and Equipment. All using agencies shall submit to the purchasing officer, at such times and in such form as the purchas- ing officer shall prescribe, reports showing all supplies and equipment which are no longer used or which have become obsolete or worn out. The purchasing 10 officer shall have authority to sell all supplies and equipment which cannot be used by any agency 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 2-173 or Section 2-174, whichever is applic- able. If there are no bids, the property may be sold at private sale. The amount received for any property sold pursuant to this code shall be deposited in the appropriate fund as designated by the purchasing officer." SECTION 12: Section 2 and Section 3 of Rule III of the Rules and Regulations to Purchasing contained in Appendix to Purchasing of Article 2, Chapter V, Title II of the Costa Mesa Municipal Code is hereby amended to read as follows: "Section 2. By the Purchasing Officer. In case of an emergency which requires immediate purchase of sup- plies, equipment or services, the city manager may authorize the purchasing officer to secure by open market procedure, as prescribed in Section 2-174 of the Municipal Code, at the lowest obtainable price, any supplies, equipment or services regardless of the amount of the expenditure. (a) Recorded explanation. A full report of the circumstances of all emergency purchases in 11 excess of $5,000.00 shall be filed by the de- partment head with the purchasing officer. Section 3. By Heads of Departments. In case of an emergency which requires immediate purchase of sup- plies, equipment or services, the head of any depart- ment 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. (a) Recorded explanation. The head of such depart- ment shall, not later than the next regular business day thereafter, submit to the purchas- ing 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." SECTION 13: Section 2-177 is hereby added to Article 2, Chapter V, Title II of the Costa Mesa Municipal Code to read as follows: "Sec. 2-177. Bid Award Appeal Procedures. Any bid with the value in excess of $5,000 may be appealed in accordance with the following procedure: 12 (a) The purchasing agent 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 formal or informal competitive bid. (b) An appellant shall file a written notice of appeal to any "Letter of Intent to Award Bid" in accordance with the following procedures: (1) The written notice of appeal shall be filed with the purchasing officer prior to bid award. (2) The written notice of appeal must include to support the specifics as to the nature of the appeal. (3) The appellant must provide any and all documentation to support the appeal. (4) The purchasing officer will respond in writing to the appellant within five (5) working days. (5) 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." 13 SECTION 14: This Ordinance shall take effect and be in full force thirty (30) days from and after the passage thereof, and prior to the expiration of fifteen (15) days from 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 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 Ordi— nance, 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 lq* day of ' 1991. ATTEST: Coity Cierk of the City of Costa Mesa 14 Mayor oV the City of Costa Mesa PROVED AS TO ro„l" CIN 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. 9/_tl was introduced and considered section by section at a r gu ar meeting of the City Council held on the day of 1991, and thereafter passed and—ad opted as whole at a 64gular meeting of the City Council held on the day of 1991, by the following roll call vote: AYES: COUNCIL MEMBERS: �r NOES: COUNCIL MEMBERS: ABSENT: COUNCIL MEMBERS: IN WITNESS WHEREOF, I have hereunto set my hand .end affixed the Seal of the City of Costa Mesa this ,Zdk day of 1991. . .�`-7 ^_` Cf�ty Clerk and ex—officio Cle of the City Council of the City of Costa Mesa 15