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HomeMy WebLinkAbout328 - Ordinances ORDINANCE NO. 3 28 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF RANCHO ~UCAMONGA, CALIFORNIA, REPEALING CHAPTER 3 . 08 OF THE RANCHO CUCAMONGA MUNICIPAL CODE AND ADDING NEW CHAPTER 3.08 TO THE RANCHO CUCAMONGA MUNICIPAL CODE RELATING TO PURCHASING THE CITY COUNCIL OF THE CITY OF RANCHO CUCAMDNGA, CALIFORNIA, DOES HEREBY ORDAIN AS FOLLOWS: SECTION 1: Chapter 3.08 of the Rancho Cucamonga Municipal Code is hereby repealed provided that said repeal shall not effect any actions or excuse any violations thereof occurring prior to the effective date of this ordinance and provided further that the applicable provisions presently existing in Chapter 3.08 shall continue to apply to the purchase of supplies, services and equipment wherein a notice inviting bids has been published as of the effective date of this Ordinance. SECTION 2: A new Chapter 3.08 is hereby added to the Rancho Cucamonga Municipal Code to be read, in words and figures, as follows: "Chapter 3.08 "Purchasin~ "Sections: 3.08.010 Adoption of purchasing system 3.08.020 Definitions 3.08.030 Centralized purchasing division 3.08.040 Purchasing agent 3.08.050 Exemptions from centralized purchasing 3.08.060 Requisitions 3.08.070 Use of purchase orders 3.08.080 Emergency purchases 3.08.090 Purchases without bidding 3.08.100 Informal bidding 3.08.110 Formal bidding procedure 3.08.120 Notice inviting bids 3.08.130 Bid opening procedure 3.08.140 Bidder's security 3.08.150 Rejection of bids 3.08.160 Award of contracts. 3.08.170 Tie bids 3.08.180 Performance bonds 3.08.190 Cooperative purchasing programs 3.08.200 Surplus personal property 3.08.210 Bidding for public works projects 3.08.220 Sole-source procurements Ordinance No. 3 28 Page 2 "3.08.010 Adoption of purchasing system. In order to establish efficient procedures for the purchase of supplies and services: to secure for the City supplies, equipment and services at the lowest competitive cost commensurate with quality needed and with due consideration to disposability; to exercise positive financial control over purchases~ to clearly define authority for the purchasing functions~ to assure the quality of purchases: and to buy without favor or prejudice: a purchasing system is adopted and shall control the procedure for all purchases except as otherwise provided by law. "3.08.120 Definitions. As used in this ordinance, the following words and terms shall be defined as follows unless the context indicates that a different meaning is intended: A. "Bidders List": A current file of sources of supply of articles for each category of commodities repetitively purchased for City use. B. "City Manager": The City Manager, or his designee, has the exclusive authority for specific administrative responsibility for this chap t er. C. "Contractual Services": Any and all telephone, gas, water, electric service: the rental or lease of equipment and machinery, and all similar services provided by agreements, except agreements for professional services or for public works projects. D. "Department" and '~Osing Department": Any of the departments, offices, or other organization units of the City, and any special agency whose affairs and funds are under the supervision and control of the City Council and for which the City Council is ex-officio the governing body. E. '%ocs1 Bidder": A firm or individual who regularly maintains a place of business and transacts business in, or maintains an inventory of merchandise for sale in, and is licenses by, or pays business taxes to, the City. F. "Non-responsive Bidder": A bidder or prospective bidder who fails to furnish a responsive bid. G. "Professional Services": The services of attorneys, physicians, architects, engineers, consultants, auditors, specialized printers, or other individuals or organizations possessing a high degree of professional, unique, specialized, technical skill or expertise, not adaptable to competitive bidding, or where the service involves a contract for special activities, negotiations for the acquisition of land, trash services, insurance bonds or any other service of a similar nature to the above engaged for a particular project or series of projects. Such contracts that exceed formal bidding limits must be approved .by the City Manager and City Council prior to execution. H. "Purchases": Purchases of supplies, equipment, services and personal property shall include leases or rentals of such items as well as transactions by which the City acqu. ires ownership. Ordinance No. 328 Page 3 I. "Purchasing Agent": The official designated by the City ~anager for enforcement and administration of this Ordinance. J. "Purchasing Policy Limits": Such limits shall be those amounts which determine purchase procedures. Such purchase limits shall be established by Resolution of the City Council. K. "Purchasing Authority Limits": The monetary limits, as established by Resolution of the City Council, which define and delegate the customary administrative authority to enter into, and execute, purchases on behalf of the City. Such limits shall not be construed to limit the authority of the City Council to reviev and approve all purchases pursuant to this (hapter. L. ~Rasponsive Bid": An offer, submitted by a responsible bidder in ink or typevritten form, to furnish supplies, materials, equipment or contractual services in conformity with the specifications, delivery terms and conditions, and other requirements included in the invitation for bids. M. "Services": Any and all services, including but not limited to equipment service contracts. ~amples are: building roofing repairs, carpeting repairs, drapery cleaning, furniture upholstery services, specialized lishting repair services, wall papering, plumbing, and other such related repair or providing of such service labor as required. N. "Supplies~, ~l~aterlals", and "~.quipmentn: Any and all articles or things which shall be furnished to or used by any department. '~3.08.030 Centralized purchasinS division. There is created a centralized purchasing division within the Administrative Services Department of the City, in which is vested authority for the centralized purchase of supplies, services and equipment. ~3.08.040 Purchasing agent. There is created the position of Purchasing Agent. The Purchasing Agent shall be appointed by the City Hanager to direct and manage the City's purchasing division. The Purchasing Agent shall endeavor to obtain the fullest possible benefit through open competition on all purchases and award all purchases to responsive bidders. He shall have the authority to purchase materials, supplies, services, equipment and other personal property required and may negotiate contracts and agreements. He shall furnish the City ~tanager with such reports and information as may be required. He shall establish methods and procedures necessary for the efficient and economical functioning of the purchasing division. ",3.08.050 Exemptions from centralized purchasing. The Purchasing Agent may, and where legally required to do so, shall authorize in writing or verbally, any department to purchase or contract for certain specified classes o£ supplies, materials, equipment, or services, independently of the Purchasing Agentl but such purchases or contracts shall be made in conformity with the applicable provisions of this ~apter. The Purchasing Agent may also rescind such authorization to purchase independently, by written or verbal notice to Ordinance No. 328 Page 4 the depart~nent or departments concerned, unless othen~ise prohibited by law. This Chapter does not apply to contracts to print legal briefs or legal notices, contracts for professional and other services or items which are in their nature unique and not subject to competition or other services for which by la~ another officer or body is specifically charged with obtaining. "3.08.060 Requisitions. All departments shall submit requests to the Purchasing Agent by standard requisition forms for the supplies, materials, equipment, and services as required for their operations and purposes and within the limits of funds appropriated therefor. The Purchasing Agent, after reviewing any such requisition, may question its propriety and may require from the head of the requesting department a justification of the quantity or quality requisitioned. "3.08.070 Use of purchase orders. Purchases of supplies, materials, equipment and services shall be made only by purchase orders. Except as othezwise provided herein, no purchase order shall be issued unless the prior approval of the Purchasing Agent or his designated representative has been obtained. "3.08.080 Emergenc~ purchases. If there is a great public calamity, such as an extraordinary fire, flood, storm, epidemic, or other disaster, or if it is necessary to do emergency work to prepare for national or local defense, the City Council may pass a resolution by a four-fifths vote of its members declaring that the public interest and necessity demand the immediate expenditure of public money to safeguard life, health, or property. Upon adoption of the resolution, it may expend any sum required in the emergency without complying with this chapter. "3.08.090 Purchases without bidding. Purchases of supplies, services, equipment and the sale of personal property shall be by bid procedures pursuant to Sections 3.08.090 through 3.08.200. Bidding shall be dispensed with only when no public work of total value in excess of the public works bidding limit is involved and one of the following conditions pertains: (1) The amount involved is within open market purchasing policy limits; or (2) An essential/critical need requires that an order be placed with the nearest available source of supply due to time constraints; or (3) The Purchasing Agent determines that the commodity can be obtained from only one vendor; or (4) An essential operation affecting the preservation of life or property, public health, safety or welfare would be greatly hampered if the prescribed procedure would cause an undue delay in the procurement of the needed services or materials: or Ordinance No. 328 Page (5) If, at the discretion of the Purchasing Agent, a distinct advantage is clearly in the City's best interest in regard to product uniformity and/or similar considerations. The City Manager or his designee must approve such purchases that exceed informal bid limits. "3.08.100 Informal bidding procedure. Purchases of supplies, services and equipment of a value less than so stated in purchasing policy limits, may be made by the Purchasing Agent, or other administrative personnel as set forth in the Purchasing Authority Limits, by observing the informal bid procedure. (1) Minimum Number of Bids. Purchases shall, wherever possible, be based on at least three bids, and shall be awarded to the lowest responsible bidder. (2) Notice Inviting Informal Bids. The Purchasing Agent may solicit bids by written requests to prospective vendors, by telephone or by public notice posted on a public bulletin board in the Rancho Cucamonga City Hall or by any other means deemed effective. (3) Written Informal Bids. Sealed written informal bids shall be submitted to the Purchasing Agent. "3.08.110 Formal bidding procedure. Ail purchase of supplies, services, leases, equipment, and the sale of personal property of an estimated value greater than the stated purchasing policy limits shall be based on competitive sealed written bids, with the lowest or highest responsible bidder, as the case may be, pursuant to the procedure hereinafter prescribed. As used in this chapter, the amount involved in a lease shall be the total amount to be paid during a one year term of the lease. Exceptions to the formal bidding procedures as otherwise provided herein are stated in Sections 3.08.080 and 3.08.090. "3.08.120 Notice invitinB 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. Notices inviting bids shall be published at least ten (10) days before the date of the opening of the bids. Notice shall be published at least once in a newspaper of general circulation, published in the area of the City. (2) Bidders' List. The Purchasing Agent shall also solicit sealed bids from responsible prospective suppliers whose names are on the bidders' list or who have made written request that their names be added thereto. Ordinance No. 3 28 Page 6 "3.08.130 Bid opening procedure. Sealed bids shall be submitted to the Purchasing Agent and shall be identified as "Bids" on the envelope. Bids shall be opened in public at the time and place stated in the public notice. In the case of a bid submitted by a local bidder as defined in Section 3.08.020(E) the Purchasing Agent shall, for the purpose of bid comparison only, reduce the amount of said bid by one percent (11). A tabulation of all bids received shall be open for public inspection during regular business hours for a period of not less than thirty calendar days after the bid opening. "3.08.140 Bidder's security. When deemed necessary by the Purchasing Agent, bidder's security may be prescribed in the public notices inviting bids. Bidders shall be entitled to return of bid security; however, a successful bidder shall forfeit his bid security upon his refusal or failure to execute the contract within ten days after the notice of a~ard of contract has been mailed, unless in the latter event the City is solely responsible for the delay in executing the contract. ~he City Council, on refusal or failure of the successful bidder to execute the contract, may eward it to the next lowest responsible bidder or reject all bids. If the City Council a~ards the contract to the next lowest responslble bidder, the amount of the lowest bidder's security shall be applied by the City to the contract price differential between the lowest bid and the second lowest bid, and the surplus, if any, shall be returned to the lowest bidder. If the City Council rejects all bids presented and readvertises, the amount of the lowest bidder's security may be used to offset the cost of receiving new bids, and the surplus, if any, shall be returned to the lowest bidder. "3.08.150 Rejection of bids. At its discretion, the City Council may reject all bids presented and re-advertise for bids. "3.08.160 Award of contracts. Except as otherwise provided in this chapter, contracts shall be awarded by the City Council to the lowest responsible bidder. "3.08.170 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 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. "3.08.180 Performance bonds. The City Council or the Purchasing Agent shall have authority to require a performance bond before entering a contract in such amount as it finds reasonably necessary to protect the best interest of the City. If the City Council requires a performance bond, the form and the amount of the bond shall be described in the notice inviting bids. "3.08.190 Cooperative purchasing programs. Purchases of supplies, equipment, services, and' sales of personal property made under a cooperative purchasing program, utilizing purchasing agreements maintained by the county, state, or other public agencies, are exempted from the requirements of this chapter. California Public Contract Code Section 10324 authorizes the Department of General Services to make purchases of materials, equipment or Ordinance No. 328 Page 7 supplies on behalf of cities in those instances when the purchases can be made by the Department of Genere/ Services upon the same terms, conditions and specifications at a purchase price lower than that which the City of Rancho Cucamonga can obtain through its normal purchasing procedures. In those instances where it is determined that purchasing through the Department of General Services will result in savings to this City, this City is authorized to make such purchases. "3.08.200 Surplus personal property. A. All departments shall submit to the Purchasing Agent at such times and in such form as he shall prescribe, reports showing stocks of all supplies, materials and equipment which are no longer used or which have become obsolete, worn out, no longer used. The Purchasing Agent shall have authority to transfer any such commodities which are usable to another or other departments in lieu of filling requisitions for the purchase of new and additional stock of the same or similar articles. B. The Purchasing Agent shall make an estimate of the value of any surplus items not usable by any City department or not required for public use. The Purchasing Agent shall have authority to sell all such supplies, materials and equipment which cannot be used by any department, or any agency, or which have been found not' to be required for public usel or to exchange or trade-in such articles in part or full payment for new supplies, materials or equipment of a similar nature. Any such sale, exchange or trade-in shall be made in accordance with Section 3.08.090, Section 3.08.100 or Section 3.08.110, whichever is applicable. C. Such items so declared to be surplus shall be offered for sale on a competitive-bid basis. Bids may be solicited by written request, telephone, public notice posted on City bulletin boards, by public auction, by advertisements in any newspaper or magazine, or by any combination of such methods. Employee bids will be considered on all publicly advertised sales~ however, no employee whose job responsibility includes the administration of such surplus property sales shall be permitted to bid on or purchase such surplus property. D. The Purchasing Agent or his designee is authorized to sell to the highest bidder. E. ~hen, after a reasonable effort has been made to obtain bids, no bids have been obtained for any item of City-owned personal property so declared to be surplus, the Purchasing Agent or his designee is authorized to dispose of such item for the highest scrap value that can be obtained therefore, and if a reasonable effort to do so produces no opportunity to sell the same for scrap, he may cause its destruction or any other disposition thereof. Ordinance No. 328 Page 8 "3.08.210 Biddlns for public works projects. Public works projects, as defined in the California Public Contract Code Section 20161 or subsequent amendments thereof, shall be bid, advertised and a~arded in accordance with applicable sections of the California Public Contracts Code. "3.08.220 Sole-source procurements. In those situations that a procurament of any product is obtainable only from a single or sole source, and not adaptable to competitive bidding, the Purchasing A~ent. upon approval of the City Hanager, shall negot, iat~ with ;he purveyor of such equipment, product, supply, or service, to the end that the City receives the desired equipment, product, supply, or service on fair and equitable terms, without observing the procedures prescribed by Sections 3.08.100 through 3.08.180. SECTION 3: The City Council of the City of Rancho Cucamonga declares that should any provision, section, paragraph, sentence or word of this Ordinance be rendered or declared invalid by any final court action in a court of competent jurisdiction, or by reason of any preemptive legislation, the remaining provisions, sections, paragraphs, sentences and words of this Ordinance shall remain in full force and effect. SECTION 4: The Hayor shall sign this Ordinance and the City Clerk shall cause the same to be published within fifteen (15) days after its passage at least once in The Daily Report, a newspaper of general circulation published in the City of Ontario, California, and circulated in the City of Rancho Cucamonga, California. PASSED, APPROVED, and ADOPTED this 4th day of November. 1987. AYES: Brown, Buquet, Stout, King, Wright NOES: None ABSENT: None Dennis L. Stout. Mayor ATTEST: Beverly/A. Authelet, City Clerk Ordinance No. 328 Page 9 I, BEVERLY A. AUTHELET, CITY CLERK of the City of Rancho Cucamonga, Callfornia, do hereby certify that the foregoing Ordinance was introduced at a regular meeting of the Council of the City oi Rancho Cucamonga held on the 21st day of October, 1987, and was finally passed at a regular meeting of the City Council of the City of Rancho Cucamonga held on the 4th day of November, 1987. Executed this 5th day of November, 1987 at Rancho Cucamonga, California. Beverly ~ Authelet, City CLerk