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
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