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HomeMy WebLinkAbout1078 ORDINANCE NO. 1078 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ARCADIA, CALIFORNIA, ADOPTING POLICIES, PROCEDURES, RULES AND REGULATIONS GOVERNING THE BIDDING FOR, C(}jTRACTING FOR, PURCHASING, STORING, DISTRIBUTION AND DISPOSAL OF SUPPLIES, MATERIALS, EQUIPMENT AND SERVICES REQUIRED FOR ANY OFFICE, DEPARTMENT OR AGENCY OF THE CITY GOVERNMENT; ESTABLISHING A CENTRALIZED PURCHASING SYSTEM AND SPECIFYING THE FUNCTIONS, PO\iERS AND DUTIES OF THE PURCHASING OFFICER; PROVIDING FOR THE COMPILATION AND ISSUANCE OF A PURCHASING PROCEDURE ~lANUAL; AMENDING SECTION 4 OF ORDINANCE NO. 939 OF SAID CITY, AND HEPEALING ORDINANCE NO. 849 OF SAID CITY. THE CITY COUNCIL OF THE CITY OF ARCADIA, CALIFORNIA, DOES ORDAIN AS FOLLOWS: SECTION 1. ESTABLISHMENT OF CENTRALIZED PURCHASING SYS- TEM. In order to establish efficient procedures for the purchase of supplies, materials, equipment and services, to secure for the City supplies, materials, equipment and services at the lowest pos- sible cost commensurate with the quality needed, to exercise posi- tive financial control over purchases, to clearly define and delegate authority for the purchasing function, and to assure the quality of purchases, there is hereby established a centralized purchasing system, under which is defined the authority for the purchase of all supplies, materials, equipment and services re- quired or purchased by or for the City. SECTION 2. SERVICES EXCLUDED. The term "services" as used herein does not include services rendered by city officers or employees, or professional and other contractual services which, in their nature, are unique and not subject to competition, or such other services as are exempted from competitive bidding under state statutes or the City Charter. -1- 1078 SECTION 3. DEFINITIONS. The term "Purchasing Officer" as used herein is synonymous with the term "Purchasing Agent" as the latter term may be used in other ordinances or resolutions, and the Purchasing Officer shall have the same powers and duties as may be given to the Purchasing Agent under any other ordinance or resolution of said City. The term "using department" or "de_ partment" as used herein shall include any office or division of City government whose cost of operations is provided by funds of the City over which the City Council has any control and when not otherwise provided for in the City Charter. SECTION 4. DUTIES OF PURCHASING OFFICER. The person holding the position to which the powers and duties herein speci- fied relating to the contracting for, purchasing, storing, distri- bution and disposal of supplies, materials, equipment and services have been assi~1ed shall, when exercising such powers or perform- ing such duties.. be known as the Purchasing Officer. The City Council, upon report or recommendation of the City Manager, shall by resolution assign the powers and duties of Purchasing Officer to any position in the city employ. The Purchasing Officer shall have the authority and it shall be his duty to: a. Purchase or contract for supplies, materials, equip- ment and servic~ls required by any using department in accordance with purchasing procedures prescribed by this ordinance. b. Negotiate and recommend execution of contracts for the purchase of supplies, materials, equipment and services. c. Operate and maintain warehouse and storage facili- ties for all supplies, materials and equipment used by more than one department of the City, and maintain proper inventory control records of the contents thereof under the supervision of the City Controller as provided for in Section 605 (f) of the City Charter. -2- 1078 d. Review requests for purchases to determine if they are reasonable in quantity and quality in relation to known needs of the using department, to ascertain that they are within budget- ary allotments, and to determine whether supplies already on hand in the warehouse or in other departments, can be us~d to fill the request. e. Control emergency purchases in accordance with the approved procedures. f. Prepare and maintain standard specifications for supplies, materials and equipment whenever practicable, and to consolidate and schedule orders for all standard items. g. Maintain records as to source of supply for types of purchases, bids, bidders' lists and bid quotations. h. Act to procure for the City the needed quality in supplies, materials, equipment and services at least expense to the City. k. necessary to ordinance. 1. equipment and ficationa. i. Discourage uniform bidding and endeavor to obtain competition as full and open as possible on all purchases. j. Keep himself informed of current developments in the field of purchasing, prices, market conditions, and new products. Prescribe and maintain such forms as are reasonably the operation of the procedures provided for in this S11pervise the inspection of all supplies, materials, services purchased to insure conformance with speci- m. Prepare and maintain an inventory record of all capi- tal properties, both real and personal, owned by the City, includ- ing land, buildings, improvements and equipment. n. Recommend the transfer of surplus or unused supplies, materials and equipment between departments as needed and the sale of all supplies, materials and equipment which cannot be used by -3- 1078 any City agency or which have become unsuitable for City use. o. Cause to be delivered or distributed to the using department all supplies, materials and equipment purchased speci- fically for such department, and cause to be distributed to the using department from available warehouse or stockroom items on hand, supplies, materials and equipment when requisitioned by any departmen t. SECTION 5. ESTIMATES OF REQUIREMENTS. All using de- partments shall file detailed estimates of their requirements in supplies, materials, equipment and services in such manner, at such time, and for such future periods as the Purchasing Officer shall prescribe. SECTION 6. REQUISITIONS. Using departments shall sub- mit requests for supplies, materials, equipment and services to the Purchasing Officer by standard requisition forms as specified in the Purchasing Procedure Manual. SECTION 7. CONTRACTS AND PURCHASE ORDERS. All purchases of supplies, materials, equipment and services shall be made only by purchase order or by contract, issued or executed as herein- after provided. SECTION 8. AVAILABILITY OF FUNDS. The Purchasing Offi- cer shall not issue any purchase order for supplies, materials, equipment or services unless there exists an unencumbered appropri- ation in the fund account against which said purchase is to be or may be charged. SECTION 9. CONTRACT PROCEDURE. Except as to matters governed by Section 1109 of the City Charter, and except as other- wise provided by the City Councilor except as otherwise specified herein, purchases and contracts for supplies, materials, equipment and services and the sale of personal property of estimated value -4- 1078 greater than three thousand dollars ($3,000.00) shall be by writ- - ten contract with the lowest or highest responsible bidder, as the case may be, pursuant to the procedure prescribed herein. 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 se- cured, 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 open- ing 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 public places in the City that have been designated by the City Council by resolution as the places 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. Rldder's Security. When deemed necessary by the Pur- chasing Officer, bidder's security may be prescribed in the public notices inviting bids. If bid security is prescribed, the same type and rate of. security shall be required of each bidder, and no contract may be awarded to any bidder failing to post the required bid security exeept upon approval of the City Council. Each bidder shall be entitled to the return of his bid security within thirty (30) days after the opening of bids for which security was posted, or upon execution of a contract with the City by the successful bidder, whichever first occurs; provided that a successful bidder -5- 1078 shall forfeit his bid security upon refusal or failure to execute the contract w:Lthin ten (10) days after the notice of award of contract has bl~en mailed, unless the City is responsible for the delay. The City Council may, on refusal or failure of the success- ful 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 re- turned to the lowest bidder. c. Bid Opening Procedure. Sealed bids shall be sub- mitted to the Purchasing Officer and shall be specifically identi- fied as bids on the envelope. 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 regu- lar business hours for a period of not less than thirty (30) calendar days a~ter the bid opening. d. Rejection of Bids. At its discretion, the City Coun- cil may reject any and all bids presented and readvertise for bids. e. Award of Contracts. Contracts shall be awarded by the City Council to the lowest responsible bidder except as other- wise provided herein. f. Tie Bids. If two 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 readver- tising 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 intere:>ts of the City. If the City Council requires a -6- 1078 performance bond, the form and amount of the bond shall be de- scribed in the notice inviting bids. SECTION 10. PURCHASE ORDER PROCEDURE. Purchases of supplies, materials, equipment and services, and sales of personal property of an estimated value in the amount of three thousand dollars ($3,000.00) or less may be made by the Purchasing Officer in the open market without observing the procedure prescribed by Section 9. a. ~uotations. Open market purchases shall, wherever practical, be based on at least three quotations. b. Request for Quotations. The Purchasing Officer shall solicit q~otations from prospective vendors pursuant to the regulations of the Purchasing Procedure Manual. c. Retention of Quotations. The Purchasing Officer shall keep a record of all open market purchase orders and quota- tions for a period of one year after the submission of quotations or the placing of orders. This record, while so kept, shall be open to public inspection. SECTION 11. EXCEPTIONS FROM BID PROCESS. Supplies, materials, equipment and services may be purchased and personal property sold, without complying with any of the bidding procedures specified in Sections 9 and 10 hereinabove in any of the following situations: a. Upon the approval of the City Manager when an emer- gency requires that an order be placed with the nearest available source of supply; b. When the amount of purchase or sale involved is less than one hundred dollars ($100.00); c. When the commodity can be obtained from only one vendor and the amount involved is less than three thousand dollars ($3,000.00 ). -7- 1078 SECTION 12. EXEMPTIONS FROM CENTRALIZED PURCHASING. The Purchasing Officer, with approval of the City Council, may in writ- ing authorize any department to purchase or contract for specified supplies, materials, equipment and. services independently of the Purchasing Officer. The Purchasing Officer shall ascertain that all purchases or contracts thus made conform with all other pro- cedures estab11.shed by this ordinance, and shall obtain periodic reports on the purchases and contracts made under such written authorization from each department making the same. SECTION 13. INSPECTION AND TESTING. The Purchasing Of- ficer shall inspect supplies, materials and equipment delivered and 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 if necessary to determine their quality and conformance with specifi- cations. SECTION 14. SURPLUS SUPPLIES AND EQUIPMENT. All using departments shall submit to the Purchasing Officer, at such times and in such form as he shall prescribe, reports showing all sup- plies and equipment which are no longer used or which have become obsolete or worn out. The Purchasing Officer shall have authority to sell all supplies and equipment which cannot be used by any de- partment or which have become unsuitable for City use, or to ex- change the same for, or trade in the same on, new supplies and equipment. Such sales shall be made pursuant to Sections 9 or 10, whichever is applicable. The proceeds of any such sale shall be credited to the fund from which the purchase price thereof was originally paid, but such proceedS shall be unbudgeted surplus in such fund until appropriated by the City Council. -8- 1078 SECTION 15. PURCHASING PROCEDURE MANUAL. The Purchas- ing Officer shall prepare a Purchasing Procedure Manual so that all concerned may have a clear definition and understanding of the aims and purposes of this ordinance. The Purchasing Procedure Manual shall describe and explain in detail the procedures that the using department must follow in the procurement of goods and services and shall include among other things samples of the various forms necessary to carry out the intent of this ordinance. The Purchasing Procedure Manual shall be submitted to the City Council for approval and when and in the form approved by the City Council shall be adopted by resolution of the Council. After the Procedure Manual is adopted by the City Coun- cil, the City Clerk shall at all times keep three (3) copies - thereof in the office of the City Clerk and open to public inspec- tion. An adequate supply of additional copies of the Purchasing Procedure Manual shall be maintained for sale to the public at a cost not to exceed its cost to the City. SECTION 16. AMENDS. Section 4 of Ordinance No. 939 en- titled "AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ARCADIA, CALIFORNIA, PROVIDING FOR THE ORGANIZATION, CONDUCT AND OPERATION OF CERTAIN OFFICFS AND DEPARTMENTS", adopted December 20, 1955, is hereby amended to read as follows: "SECTION 4. There is hereby created a Department of Fi- nance. The City Controller shall ex officio be the department head of the Department of Finance. In addition to the functions and duties required to be performed by the Controller by the Ar- cadia City Charter, the Department of Finance shall prepare and maintain accurate current records of all accounts receivable of the City of Arcadia, based on pertinent data received from the respective departments of the City, and shall make timely billings of all such accounts receivable." -9- 1078 SECTION 17. REPEALS. Ordinance No. 849 entitled "AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ARCADIA, CALIFORNIA, CREATING A PURCHASING DEPARTMENT, THE OFFICE OF PURCHASING AGENT, AND PRESCRIBING RULES RELATIVE THERETO", adopted May 6, 1952, as well as all other ordinances or parts of ordinances in conflict herewith, are hereby repealed. SECTION 18. SEVERABILITY. If any section, subsection, subdivision, sentence, clause or phrase of this ordinance is for any reason held to be unconstitutional or otherwise invalid, such decision shall not affect the validity of the remaining portions of this ordinance. The City Council hereby declares that it would have passed this ordinance and each section, subsection, subdivi- sion, sentence, clause and phrase thereof, irrespective of the fact that any one or more sections, subsections, subdivisions, sen- tences, clauses or phrases be declared unconstitutional. SECTION 19. WAIVER. After notice of failure to comply with one or more provisions hereof, the City Council may declare void any transaction not in conformity herewith, or may waive any irregularity or non-compliance herewith with respect to such trans- action. The non-compliance with the provisions hereof by the Pur- chasing Officer or by any other city officer or employee shall, in addition to any other applicable penalty, constitute grounds for disciplinary action, including dismissal, unless the city manager, after notice thereof, in writing waives such non-compliance in mat- ters wherein he could have initially approved the action taken, or in other matters unless the City Council, after notice, waives the non-compliance by the vote of a majority of its members entered in the council minutes. SECTION 20. CERTIFICATION. The City Clerk shall certify to the adoption of this ordinance and prior to the expiration of fifteen (15) days from the passage thereof shall cause the same to -10- 1078 be published once in the Arcadia Tribune and Arcadia News, a news- paper of general circulation published and circulated in the City of Arcadia. I HEREBY CERTIFY that the foregoing ordinance was adopted at a regular meeting of the City Council of the City of Arcadia, held on the 19th day of April, 1960, by the affirmative vote of at least three Councilmen, to wit: AYES: Councilmen Balser, Camphouse, Phillips and Reibo1d NOES: None ABSTAINED: Councilman Butterworth ABSENT: None ~~~~~ i y C er 0 the ~ty 0 rca a SIGNED AND APPROVED this 19th day of April, 1960. ~~~~"fi:i.dla e. ATTEST: z~~:~ C Y er (SEAL) -11- 1078