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Home My WebLink About2068 ORDINANCE NO. 2068 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ARCADIA, CALIFORNIA, AMENDING VARIOUS SECTIONS OF CHAPTER 8, ARTICLE II OF THE ARCADIA MUNICIPAL CODE TO REVISE THE CITY PURCHASING PROCEDURES BY CHANGING THE FORMAL CONTRACT PROCEDURE, THE INFORMAL PURCHASE ORDER PROCEDURE, ESTABLISHING A LIMITED PURCHASE ORDER PROCEDURE, AND ESTABLISHING AN AL TERNA TIVE PURCHASING PROCESS FOR CONTRACTS UNDER $30,000 AND AUTOMATIC ADmSTMENT OF CERTAIN PURCHASING PROCEDURE AMOUNTS WHEREAS, Arcadia Municipal Code Section 1212 was revised in 1996 to raise the requirernents of formal bidding on Public Works contracts from $6,000 or more to contracts of$30,000 or more; and WHEREAS, the above change was to update the City Charter in view of normal inflation since promulgation ofthe $6,000 requirement; and WHEREAS, the City Purchasing Ordinance should be adjusted consistent with the City Charter revision; and WHEREAS, an efficient cost effective purchasing systern should have flexibility with safeguards in order to optirnize the purchasing of quality goods, equiprnent and services at the lowest possible cost. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF ARCADIA, CALIFORNIA, DOES HEREBY FIND, DETERMINE AND ORDAIN AS FOLLOWS: Various Sections of Article II, Chapter 8 of the Arcadia Municipal Code are hereby amended to read as follows: SECTION 1. That the Arcadia Municipal Code is hereby amended by adding a new Section 2841.5 to read as follows: 2841.5. AL TERNA TIVE PROCESS. In lieu of the procedures set forth in the following Divisions 2 and 3, contracts not governed by Section 1212 of the City Charter (i.e. less than $30,000) may be awarded by the City on the basis of demonstrated competence and on qualifications necessary for the satisfactory performance of the services required to be performed at fair and reasonable prices, pursuant to the following requirernents. (a) Cornpetition based on requests for proposals to prospective contractors and on procedures that assure that those services are engaged on the basis of dernonstrated cornpetence and qualifications as prepared in writing by the Purchasing Officer and approved by the City Attorney. (b) Selection based on criteria and requirements approved in advance by the City Manager and Purchasing Officer. (c) The award of all such contracts in excess of $15,000 shall be by the City Council. 2 2068 (d) The award of such contracts less than $15,000 shall be by the requesting Department, subject to approval in writing by the Purchasing Officer and City Manager or his designee. (e) All exceptions and exemptions from the bid process as set forth in Arcadia Municipal Code Section 2844.1 shall apply to the procedures set forth in this Section. (t) This Section shall not apply to work done by the City with its own personnel if the City Council determines that such work can be performed rnore economically by City forces than by contracting for such work. (g) For purposes of this Section, Public Works contracts shall rnean contracts for the erection, construction, alteration or irnprovernent or repairs of any public structure, building, road, street or other public irnprovement or public works of any kind. (h) The procedures referred to above at subsection (a) shall prohibit unlawful activities including but not lirnited to rebates, kickbacks, or other unlawful consideration, and shall specifically prohibit City ernployees frorn participating in the selection process in violation of the conflict of interest requirernents of the Political Reform Act of 1974 (Government Code Section 87100 et seq.). The terms of this subsection shall also apply to the selection of professional services of private architectural, landscape architectural, engineering, 3 2068 in Government Code Section 4526. SECTION 2. That the Arcadia Municipal Code is hereby amended by adding a new Section 2841.6 to read as follows: 2841.6. AUTOMATIC ADJUSTMENT TO PURCHASING AMOUNT LIMITS. The threshold amounts for various purchasing procedures as set forth in Arcadia Municipal Code Sections 2842.1, 2843, 2843.4 and 2841.5 shall be subject to autornatic adjustrnents as set forth in the following: Starting in Decernber 1998, the amount set forth in the above Code sections will be adjusted annually by Administrative Services to reflect inflation. In December of each year, the Adrninistrative Services Director shall review the most recent October All Urban Consumer Price Index (CPI) for the Los Angeles-Anaheirn- Riverside Area published by the U.S. Department of Labor, Bureau of Labor Statistics. When such index differs frorn the index for the previous October, the factor of increase or decrease shall be calculated and applied to the then, fonnal bid threshold. When such adjustrnent, in aggregate over time, is equal to or greater than $2,500, the then fonnal bid threshold shall be adjusted accordingly. The factor applied to the bid adjustrnent shall be cornputed by dividing the CPI for the current October by that pertaining to the previous October. The bid factor then in effect shall be multiplied by said factor and the resultant adjustment determined. This adjustment shall then be added to any subsequent adjustrnents and when the accurnulated adjustrnent are equal 4 2068 to or greater than $2,500, the formal bid threshold shall be adjusted for the following year. Any adjustments less than an incrernent of $2,500 will be accumulated and applied to future years. The calculation and adjustment of the bid factor will be applied by administrative authority requiring City Manager approval. When approved the revised arnounts shall be incorporated as part ofthe City's Purchasing Manual and all related purchasing forms and notices shall reflect the revised amounts. EXCEPTION: The provisions of this section shall not apply to contracts on public works ($30,000 and above) as set forth in Arcadia City Charter Section 1212. SECTION 3. That Article II, Chapter 8, Division 2, Part 4 ofthe Arcadia Municipal Code is hereby amended to amend the Division 2 Title and Section 2842.1 as follows: DIVISION 2 CONTRACT PROCEDURE (FORMAL) 2842.1. WHEN REQUIRED. Except as to matters governed by Section 1212 of the Charter, and except as otherwise provided by the Councilor except as otherwise specified in this Chapter, purchases and contracts for supplies, rnaterials, equipment and services, other than professional services, and the sale of personal property of estimated value greater than Thirty Thousand Dollars ($30,000) shall be by written contract with the lowest or highest responsible bidder, as the case may be, pursuant to the procedure prescribed in this Division. 5 2068 SECTION 4. That the Arcadia Municipal Code is hereby amended to revise Section 2843 and add a Section 2843.4 to read as follows: 2843. PURCHASE ORDER PROCEDURE (INFORMAL BIDS). Purchases of supplies, materials, equiprnent and services, and sales of property of an estirnated value in the amount of under Thirty Thousand Dollars ($30,000) and greater than One Thousand Dollars ($1,000.00) or less may be rnade by the Purchasing Officer in the open market without observing the procedure prescribed by Division 2 of this Part. 2843.4. LIMITED PURCHASE ORDER. A Limited Purchase Order procedure shall be established and implemented by the Purchasing Manual for purchasing goods and/or services under One Thousand Dollars ($1,000.00). SECTION 5. That the City Clerk shall certify to the adoption of this Ordinance and shall cause a copy of the sarne to be published in the official newspaper of said City within fifteen (15) days after its adoption. 6 2068 Passed, approved and adopted this 15th day of April , 1997. A TIEST: APPROVED AS TO FORM: ?!J;!,1 JL 1llJ!iL City Attorney 7 2068 STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES) SS: CITY OF ARCADIA ) I, JUNE D. ALFORD, City Clerk of the City of Arcadia, hereby certify that the foregoing Ordinance No. 2068 was passed and adopted by the City Council of the City of Arcadia, signed by the Mayor and attested to by the City Clerk at a regular meeting of said Council held on the 15th day of April, 1997 and that said Ordinance was adopted by the following vote, to wit: A YES: Councilrnernber Chang, Harbicht, Kovacic, Young and Kuhn NOES: None ABSENT: None 8 2068