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HomeMy WebLinkAbout23 - Ordinances ORDINANCE NO. 23 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF RANCHO CUCAMONGA, CALIFORNIA, ESTABLISHING A PURCHASING SYSTEM OF REGULATIONS AND REQUIREMENTS, AND PROVIDING FOR THE PURCHASE AND SALE OF SUPPLIES, EQUIPmeNT AND SERVICE. I. DEFINITIONS. SECTION 1. As used in this chapter: (a) Agency and using agency includes "employees" and "officials" whether elective or appointive of the City of Rsncho Cucamonga in any of the departments, offices, or other organization units~ and any special district whose affairs and funds are under the supervision and control of City Council and for which the City Council is ex officio the governing body. (b) Supplies, materials and equipment mean any and all articles or things which shall be furnished to or used bv any agency, including any and all printing, binding, or publication of stationery, forms, laws, journals and reports. (c) Contractual services means anv and all services including, but not limited to, the following: the repair, rental or maintenance of equipment, machinery and other city-owned or operated property. The term does not include services rendered by city officers or employees nor professional and other contractual services, which are in their nature unique, and not subject to competition. (d) Bidders list means a current file of sources of suoplv of articles for each category of commodities repetitively purchased by the City of Rancho Cucamonga. (e) Responsible bid means an offer, submitted by a responsible bidder in ink or typewritten form: to furnish supplies, materials, equipment or contractual services in conformity with the specification, delivery terms and conditions, and other requirements included in the invitation for bids. (f) Responsible bidder means a bidder who submits a responsible bid; who has furnished, when requested, information and data to prove that his financial resources, production or service facilities, service reputation and experience are adequate to make satisfactory delivery of the supplies, materials, equipment or contractual service on which he bids: and who has not violated, or attempted to violate, any provisions of this chapter. (g) Non-responsive bidder means a bidder or prospective bidder who fails to furnl '~, upon written request, proof of his responsi- bility; who has, as a ven~r or contractor with the City of Rancho Cucamonga, repeatedly made slow or unsatisfactory deliveries: or has violated, or attempted to violate, the provisions of this chapter. (h) Local bidder is a firm or individual who for at least twelve (12) consecutive months has regularly maintained a place of business in, or maintained an inventory of merchandise for sale in, and licensed by, or pays business license fees to, the City of Rancho Cucamonga. SECTION 2. Adoption of purchasing system. In order to establish efficient procedures for the purchase of supplies, contractual services and equipment; to secure for the City of Rancho Cucamonga supplies, contractual services and e~uipment 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, a purchasing system is hereby adopted. Ordinance No. 23 Page 2 SECTION 3. Centralized purchasing department. There is hereby created a centralized purchasing department in which is vested authority for the purchase of supplies, contractual services and equipme~ SECTION 4. Purchasing official generally. The duties of the purchasing official may be combined with those of any other officer or position in the classified service. The purchasing official will have authority to: (a) Purchase or contract for supplies, contractual services and equipment required by any using agency in accordance with purchasing procedures prescribed in this chapter. The purchasing official shall adopt certain regulations for the internal management and operation of the Purchas- ing Department and such other rules and regulations as shall be prescribed by the City Manager. (b) Negotiate and recommend execution of contracts for the purchase of supplies, contractual services and equipment. (c) Act to procure for the City the needed quality suoplies. contractual services and equipment at least expense to the City. (d) Discourage uniform bidding and endeavor to obtain as full and open competition as possible on all purchases. (e) Prepare and recommend to the City Manager for Council approval, rules and procedures governing the purchases of supplies, contractual services and equipment for the City; and likewise prepare and recommend revisions and amendments to said purchasing rules and procedures. (f) Keep informed of current developments in field of purchasing, prices, market conditions and new products. (g) Prescribe and maintain such forms as reasonably necessary to conform to the requirements of this chapter and other rules and regulations. (h) Supervise the inspection of all supplies, contractual services and equipment purchases to insure conformance with specifications. (i) Recommend to the City Manager the transfer of surplus or unused supplies and equipment between departments and using agencies as needed; and the sale of all supplies and equipment which cannot be used by any agency or which have become unsuitable for City use. (j) ~aintain a bidders list, vendors catalog file and such other records needed for the efficient operation of the Purchasing Department, or which may be required by the City Manager. (k) Operate all storerooms for the storage of common use items, being responsible for the safekeeping and proper storage and handling of all supplies and equipment therein. (1) Prescribe and maintain a perpetual inventory system showing quantities and monetary values of the inventories in all store- rooms including those operated by agencies. SECTION 5. Exemptions from centralized purchasing. The purchasing official, with written approval of the City Manager. may authorize in writing any agency to purchase or contract for -~'~cified supplies, contractual services and equipment independently of the ~hasing department~ but he shall require that such purchases or contracts ~ade in conformity with the procedures established by this chaoter and ~il further require periodic reports from the agency on the purchases and ~ontracts made under such written authorization. Ordinance No. 23 Page 3 SECTION 6. Estimates of requirements. All using agencies shall file detailed estimates o~ their require- ments in supplies, contractual services and equipment in such manner, at such time, and for such future periods as the City Manager shall prescribe. SECTION 7. Requisitions. The using agency shall submit requests for supplies, contractual services, and equipment to the purchasing official by standard requisition forms. SECTION 8. Bidding. Purchases of supplies, contractual services, equipment and the sale of personal property may be by bid procedure pursuant to Part 1 of this chapter. Bidding shall be utilized as a purchase procedure when in the determination of the City Manager the best interests of the citizens will be served or negotiation will be utilized in those instances where, in the opinion of the City Manager, the best value to the citizens can be obtained by that procedure. W~nen the amounts involved are more than $5,000, and whether bidding !' .~edure is used or not, all such purchases, contracts and sale of persona property shall be subject to approval of the Council. SECTION 9. Purchase orders. Purchase of supplies, contractual services and equipment shall be made only by purchase order signed bv the City Manager or an official designated by the City Manager. SECTION 10. Encumbrance of funds. Except when approved by the City Manager, the purchasing official shall not issue any purchase order for supplies, contractual services or equipment unless there exists an unencumbered appropriation in the fund account against which the purchase is to be charged. II. FO~iAL CONTRACTS PROCEDURE. SECTION 1. Formal written contract procedure. Except as otherwise provided herein, purchases and contracts for supplies, contractual services and equipment, and sale of personal property at an estimated value greater than $5,000 shall be by written contract. SECTION 2. 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 the opening of bids. (a) 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 twice in a newspaper of general circulation, printed and published in the Citv, as provided by Section 37903 of the Government Code. (b) Bidders list. The purchasing official 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. Ordinance No. 23 p~ge 4 (c) Bulletin board. The purchasing official shall also advertise pending purchases or sales by a notice posted on a public bulletin board in the city hall. SECTION 3. Bidders security. When deemed necessary by the purchasing official, bidders 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 his 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, awards the contract to the next lowest bidder, the amount of the lowest bidders 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. SECTION 4. Bid opening procedure. Sealed bids shall be submitted to the purchasing official and shall be identified 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 opened for public inspection during regular business hours for periods of not less than thirty (30) calendar days after the bid opening. SECTION 5. Rejection of bids. In its discretion, the City Council may reject any and all bids presented and re-advertise for bids. SECTION 6. Award of contracts. Contracts shall be awarded by the City Council to the lowest responsible bidder except as otherwise provided herein. SECTION 7. Tie bids. If two (2) or more bids received are for the same total amount or unit price, the 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 if chooses or accept the lowest bid made by negotiation with the tie bidders at the time of the bid opening. SECTION 8. 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 or as may be required by law. If the City Council requires a performance bond, the form and amount of the bond shall be described in the notice inviting bids. III. OPEN MARKET PROCEDURE SECTION 1. Open market procedure. When to be used. Purchases of supplies, equipment, contractual services, and sales of personal property at an estimated value in the amount of thirty-five hundred dollars ($3,500) or less may be made by the purchasing official in the open market without observing the procedures prescribed by Parts 1 and 2 hereof. SECTION 2. Minimum number of bids. Open market purchases shall, wherever possible, be based on at least three bids, and shall be awarded to the lowest responsible bidder, SECTION 3. Notice inviting bids. A purchasing official shall solicit bids by written request to prospective vendors, by telephone, and by public notice posted on a public bulletin board in the city hall. Ordinance No. 23 Page 5 SECTION 4. Written bids. Sealed written bids shall be submitted to the purchasing official 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. IV. GENERAL REQUIREMENTS SECTION 1. Inspection and testing. The purchasing official shall 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 official 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 2. Surplus supplies and equipment. All using agencies shall submit to the purchasing official, at such times and in such form as he shall prescribe, reports showing all supplies and equipment which are no longer used or which have become obsolete or worn out. The purchasing official 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 sale shall be made pursuant to Parts 1 and 2 hereof, whichever is applicable. SECTION 3. Unlawful purchases. If any agency purcbmses or contracts for any supplies, materials, equipment or contractual services contrary to the provisions of this chapter, such purchase order or contract shall be void and of no effect. The head of the agency making such purchase transaction shall be personally liable for the amount of such purchase order or contract, and, if already paid for out of City funds, the amount thereof may be recovered in the name of the City in an appropriate action therefor. It shall be unlawful for any agency to split its requirements for supplies, materials, equipment and contractual services into estimated amounts of less than thirty-five hundred dollars ($3,500) in order to evade the provisions of this chapter. SECTION 4. Gratuities. (a) The acceptance of any gratuity in the form of cash, merchandise or any other thing of value by an official or employee of the City from any vendor or contractor, or prospective vendor or contractor, or from any person shall be deemed to be a violation of the City of Rancho Cucamonga municipal code and shall be cause for removal or other disciplinary action and shall also be cause for punishment under the penalty provision of this code. (b) The offer of any such gratuity to any official or employee of the City by any vendor or contractor, or prospective vendor or contractor, or any other person, shall be cause for declaring such individual or firm to be an irresponsible bidder and for debarring him from bidding, as provided by Section 5 hereof. Ordinance No. 23 Page 6 SECTION 5. Debarrment of irresponsible Bidders. The purchasing official may determine and declare a bidder to be irresponsible for the reasons cited in Parts 1 and 2 of Section 4 of this part, may remove his name from the bidders list; and may debar him from bidding for a reasonable period of not less than one (1) year. Such debarred bidder shall be notified in writing of such action and shall be furnished with a statement of the reasons therefor. PASSED, APPROVED, and ADOPTED this 3rd day of May, 1978. ~~Rancho ~ucamonga ATTEST: