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HomeMy WebLinkAbout328B - Ordinances ORDINANCE NO. 328B AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF RANCHO CUCAMONGA REPEALING CHAPTER 3.08 OF TITLE 3 OF CHAPTER 3.08 THERETO, AND REVISING THE CITY'S PURCHASING SYSTEM The City Council of the City of Rancho Cucamonga does ordain as follows: SECTION 1: Chapter 3.08 of Title 3 of the City of Rancho Cucamonga Municipal Code hereby is repealed, provided, however, that such repeal shall not affect in any manner any purchases initiated prior to the effective date of this Ordinance. SECTION 2: A new CHAPTER 3.08 hereby is added to TITLE 3 of the RANCHO CUCAMONGA MUNICIPAL CODE to read, in words and figures, as follows: PURCHASING SYSTEM Sections: 3.08.010 Adoption of Purchasinq System. 3.08.020 Definitions. 3.08.030 Centralized Purchasinq Division. 3.08.040 Purchasin§ and Central Services Manager. 3.08.050 Purchasing Manaqer- Powers and Duties. 3.08.060 Requisitions. 3.07.070 Biddin§ - Generally. 3.08.080 Formal Bid Procedure. 3.08.090 Informal Bid Procedure. 3.08.100 Open Market Procedure. 3.08.'110 Bidding for Public Works Proiects. 3.08.'120 Inspection and Testinq. 3.08.130 Competitive Negotiation. 3.08.140 Discretionary Approvals. 3.08.150 Disposition of Surplus Supplies and Equipment. 3.08.160 Recycled Product Procurement Policy. Ordinance 328B Page 2 3.08.010 Adoption of Purchasing System. A pumhasing system hereby is adopted in order to establish efficient procedures for the purchase of supplies, equipment and services; to secure for the City supplies, equipment and services at competitive costs, commensurate with quality needed and with due consideration to disposability, to exercise positive financial control over purchases, to clearly define authority for the purchasing function, to assure the quality of purchases, and to buy without favor or prejudice. No contract entered into in contravention or violation of this Ordinance shall be enforceable against the City. 3.08.020 Definitions. As used in this Chapter, the following words and terms are defined as foIIows unless the context indicates that a different meaning is intended: 'Activity' or 'Using Agency' means any department, agency or other unit of City government which derives its support wholly or in part from the City. 'Local Bidder' means a person, firm, partnership or corporation considered to be a point of sale within the City pursuant to the Constitution and laws of the State of California. 'Low Bidder' means the person, firm, partnership or corporation submitting the lowest price for the supplies, materials, equipment or services which meet or exceed the specifications, delivery terms and conditions and other requirements included in the invitation to bid. 'Professional Services' means the services of attorneys, physicians, architects, engineers, auditors, specialized printers, or other individuals or organizations possessing a high degree of professional, unique, specialized or 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 other service of a similar nature to the above, engaged for a particular project or series of projects. 'Purchases' means purchases of supplies, equipment, services and personal property and shall not include real property leases, rentals or purchases. 'Purchasing Manager' means the official(s) designated by the City Manager for administration and/or enforcement of this Ordinance. 'Purchasing Policy Limits' means such limits which shall be those amounts which determine purchase procedures. Such purchase limits shall be established by a resolution of the City Council. 'Services' means any and all services, including, but not limited to, equipment service contracts. The term does not include services rendered by City officers or employees, nor professional services for which the procedure for procurement is specifically provided by law or approved City procedures which are in their nature unique and not subject to competitive bidding. This definition does not include public works projects - See Section 110 regarding bidding for public works. O~inance 328B Page 3 'Supplies' and 'Equipment' means any and all articles, things or personal property furnished to, or used by, any City department. 3.08.030 Centralized Purchasinq Division. There is created a purchasing division within the City which is vested with the authority for the centralized purchase of supplies, equipment and services. 3.08.040 Purchasinq and Central Services Manager. The purchasing manager may delegate the duties of that position to subordinate employees. The purchasing manager shall direct and supervise the City's purchasing program. The purchasing manager shall endeavor to obtain as full and open a competition as possible on all purchases. The purchasing manager shall establish methods and procedures for the efficient and economical functioning of the purchasing program. 3.08.050 Purchasing Manaqer- Powers and Duties. The purchasing manager shall have the authority to: A. Purchase or contract for supplies, materials, equipment and services required by a using department in accordance with the purchasing procedures prescribed by this Chapter. B. Enter into any contract permitted by law, including, but not limited to, equipment service contracts, lease purchase agreements, agreements for services and professional services, and rental agreements subject to any restrictions set forth in this Chapter or specifically provided by law. C. Maintain when feasible full and open competition among bidders on all purchases. D. Prepare, recommend and implement rules governing the purchasing of supplies, equipment and services for the City and recommend revisions and amendments where applicable. E. Keepinformedofcurrentdevelopmentsinthefieldofpurchasing,prices, market conditions and new products. F. Prescribe and maintain such forms as are reasonably necessary to the operation of this Ordinance and other rules and regulations. G. Recommend the transfer of surplus or unused supplies and equipment between departments as needed and the sale of all supplies and equipment which cannot be used by any department or which become unsuitable for City use. H. Maintain a vendor's list, vendor's catalog file and records needed for the efficient operation of the purchasing division. I. Manage and supervise the City central warehousing facility. 3.08.060 Requisitions. All departments shall submit requests to the purchasing manager by standard requisition form or by other means as may be established by purchasing procedures for the supplies, materials, equipment and services as Ordinance 328B Page 4 required for their operations and purposes and within the limits of funds appropriated therefore. The purchasing manager, after reviewing any such requisitions, 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 Biddinq - Generally. A. Purchasing of supplies and equipment shall be by bid process pursuant to Sections 3.08.080 and 3.08.090 of this Chapter. However, bidding may be dispensed with upon adequate, specific documentation when one of the following conditions exists: 1., When, in the view of the City Manager or the person acting in that capacity, an emergency requires that an order be placed with the nearest available source(s) of supply. 2,. When the amount involved is less than the open market amount established by resolution of the City Council. 3,, When the commodity can be obtained from only one vendor. A commodity shall be considered obtainable only from one vendor when only one vendor offers it for sale, lease or rental, or when only one vendor is able to do so within the time frame and/or under the terms and conditions which reasonably meet the needs of the using agency, or when there is a sole distributor or manufacturer of a product or service such that there is no aoceptable substitute within a specific geographical area. 4. When there is to be a contract for professional services; provided, however, that contracting for professional services shall be conducted pursuant to a request for proposal/qualification procedure. Award(s) of professional services contracts shall be made by the purchasing manager when the same have been budgeted and for which sufficient funds have been appropriated. 5. When through cooperative purchasing with the state, the county, or other public agencies, the advantage of large-scale buying may be obtained. 8. When the purchase is beneficial to the interest of the City and is from a supplier who has been awarded a specific item or items in a contract resulting from a formal competitive bid process by another governmental agency within the state of California or by the federal government within the previous three-hundred sixty-five days (one year). 7, When purchasing from or selling to another governmental agency utilizing purchasing agreements maintained by said governmental agency when such action is beneficial to the interests of the City. 8. When the City Council determines by resolution it would be in the best interest of the City to dispense with bidding; provided, however, that the City Council shall state the basis of its determination. 9. When there is a breakdown in essential machinery, essential services, or when unforeseen circumstances arise including delays by contractors, Ordinance 328B Page 5 delays in transportation, and unanticipated volume of work which requires the immediate attention of a professional or immediate service/repair in order to protect public health, safety or welfare. B. Additional Requirements and Prohibitions. 1. Notwithstanding any other term or provision hereof, no contract shall be awarded to any person, firm, partnership or corporation that does not have a City business license when required to possess the same pursuant to any provision of this Code. 2. No person shall be interested personally in any contract made hereunder (See: California Government Code Section 1090, et seq.) or violative of the conflict of interest provisions of the City and/or the Political Reform Act (See: California Government Code Section 87100, et seq.). 3. Contracts for services and public works projects less than the minimum amounts for public works bidding (See: California Public Contract Code Section 20160, et seq.) may require the payment of prevailing wages pursuant to the California Labor Code. 4. Bid Splitting: It shall be unlawful to split or separate into smaller units, quantities, work orders, or projects any purchase of supplies, equipment or services for the purpose of evading the provisions of this Chapter pertaining to the purchase of supplies, equipment or services. Every person who willfully violates this Section is guilty of a misdemeanor. 3.08.080 Formal Bid Procedure. Except as otherwise provided in this Chapter, purchases of supplies, equipment or services of an individual estimated value greater than the established formal bid procedure amount, shall be by written contract with the lowest or highest responsible bidder, as the case may be, pursuant to the procedures prescribed in this Section. A. Notice Inviting Bids. Notices inviting bids shall include a general description of the article(s) 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 Notices. Notices inviting bids shall be published at least ten (10) days before the date of the opening of the bids. Notices shall be published at least once in a newspaper of general circulation. 2. Bidder's List. The purchasing manager shall also solicit bids from responsible prospective suppliers whose names are on the bidder's list or who have made a written request that their names be added to the bidder's list. B. Bidder's Security. When deemed necessary by the purchasing manager, bidder's security may be prescribed in the public notice inviting bids. Bidders shall be entitled to return of bid security; provided, however, that a successful bidder shall forfeit the bid security upon refusal or failure to execute the contract within ten (10) days after the notice of award of the contract has been mailed unless, in the latter event, the City is solely responsible for the delay in executing the contract. The City may, on refusal or failure of the successful bidder to execute the contract, award it to the next lowest responsible bidder, Ordinance 328B Page 6 with the bidder's security being applied to the amount of the contract price differential between the lowest bid and the second lowest bid, with the surplus, if any, returned to the lowest bidder. If the City rejects the remaining 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. C. Bid Opening Procedure. Sealed bids shall be submitted to the purchasing agent and shall be identified as a bid on the envelope. Bids shall be opened in public at the time and place stated in the public notice. A tabulation of all bids received shall be available for public inspection during regular business hours adter the bid opening. D. Rejection of Bids. The City may reject any and all bids presented, readvertise for bids or award a contract after negotiation for the most reasonable cost under existing conditions. The right to reject any and or all bids is expressly reserved to, the City and said decision shall be final. E. Determination of Lowest Responsible Bidder. Upon opening and tabulation of all bids received to determine the Iow bidder, the purchasing supervisor shall thereafter determine the lowest responsible bidder by applying the following criteria: 1. For purposes of determining the lowest responsible bidder there shall be deducted from the bid(s) submitted by a local bidder all sales taxes which will be apportioned to and received by the City. 2. The ability, capacity and skill of the bidder to provide the service or commodity required and to comply with all specified requirements in the bid document. 3. The bidder's record of performance of previous contracts or services; previous failure to perform to City requirements may disqualify the bidder. 4. The ability of the bidder to provide future maintenance and service for the use of the subject of the contract. 5. Whenever the purchasing manager determines that a bidder is not responsible pursuant to this Section and the specifications of the notice inviting bids, the purchasing manager shall notify the bidder of said determination, in writing. The bidder may, within ten (10) days after notice is given by the purchasing manager, appeal such determination to the city manager who shall conduct a public hearing to determine whether or not the biclder is a responsible bidder. The decision of the city manager shall be final. F. Award of Contracts. Except as otherwise provided in this Chapter, contracts shall be awarded to the lowest responsible bidder. The purchasing manager shall have the authority to award contracts (including capital outlay items) which have been budgeted and for which there are sufficient funds appropriated. Contracts which exceed the appropriated amount, or which are not budgeted, shall not be awarded except upon approval of the city council. Ordinance 328B Page 7 G. Tie Bids. If two or more bids received are for the same total amount or unit price, quality and service being equal, the City may, in its discretion, accept either bid submitted. H. Performance Security. A performance bond, certificate of deposit or cash may be required before entering into a contract, in such amount as is deemed reasonably necessary to protect the interests of the City. if performance security is required, the acceptable type and amount thereof shall be described in the notice inviting bids and, if a bond, the form of the bond shall be as determined by the City attorney. 3.08.090 Informal Bid Procedure. Purchases of supplies, equipment and services of a value established by resolution requiring informal bid procedures, shall be made by the purchasing manager by the informal bid process pursuant to the procedure prescribed in this section and without observing the procedure described in Section 3.08.080 of this Chapter. A. Minimum Number of Bids. Informal bid purchases shall, whenever possible, be based on at least three (3) bids and shall be awarded to the lowest responsible bidder. B. Solicitation of Informal Bids. The purchasing manager shall solicit informal bids by written requests to prospective vendors, via fax machine, by telephone, electronically, or by any other means deemed effective. C. Informal Bids. Informal bids shall be submitted, in writing, to the purchasing manager, who shall keep a record of all such bids open to public inspection after the submission of bids or the placing of an order. D. The purchasing manager shall establish lists, by category or type, of persons, firms, partnerships or corporations capable of and willing to submit bids for goods, services or supplies and shall invite submittals for placement on said lists. When requesting the submittal of informal bids, it shall be the duty of the purchasing manager to rotate the names of interested persons, firms, partnership or corporations so as to maximize the number of potential bidders. Any bid submitted in a timely fashion during an informal bid procedure shall be considered even if no notice was previously provided to the bidder. The purchasing manager shall, further, post a list of goods, services and supplies proposed to be purchased so as to permit interested parties to bid thereon. Said posting shall comply with any and all applicable rules pertaining to posting, as adopted by the city council. E. Notwithstanding any other term or provision of this Section 3.08.090, the provisions of Subsections D, E, F, G and H of Section 3.08.080 shall be applicable to informal bids. 3.08.'100 Open Market Procedure. The purchasing manager may procure goods, services and supplies for the City without resort to either the formal bid or informal bid procedures with regard to purchases in amounts within the open market procedure limits, as established by resolution. The purchasing manager shall maintain lists of providers capable of supplying such goods, services and supplies and shall rotate the use thereof. Ordinance 328B Page 6 3.08.110 Bidding for Public Works Projects. Public works projects, as defined by the California Public Contract Code shall be bid, advertised and awarded in accordance with California Public Contract Code Sections 20160, etseq. Publicworks projects not exceeding the amount specified in California Public Contract Code Section 20161, as the same may be amended from time to time, shall be awarded pursuant to the informal bid process above. 3.08.120 Inspection and Testing. The purchasing agent, or such person as may be appointed by the purchasing manager, may inspect the supplies and equipment delivered to determine their conformance with the specifications set forth in the order. The purchasing manager shall have authority to require chemical or physical tests of samples submitted with bids and samples or deliveries which are necessary to determine their quality and conformance with the specifications. 3.08.130 Competitive Neqotiation. The purchasing manager may, in place of formal bidding procedures, institute procurement by a process of sealed proposals and competitive negotiation if a proposed purchase involves goods, equipment or products of a unique and complex design and/or must be manufactured or assembled to the particular needs of the City. The city manager or his or her designee must approve of such purchasing procedure and purchases. 3.08.140 Discretionary Approvals. In discretionary approvals related to engineering and planning, if a professional services agreement is required for which the City is to be reimbursed, the City will select the consultant. 3.08.150 Disposition of Surplus Supplies and Equipment. All using departments shall submit to the purchasing manager, at such times and on such forms as the purchasing agent shall prescribe, reports showing all supplies and equipment which are no longer used or which have become obsolete or worn out. The purchasing manager shall have authority to exchange for or trade in on new supplies and equipment all supplies and equipment which have become unsuitable for City use. A. 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, fax machine, by public auction, by use of an auction service by advertisement in any newspaper or magazine, or by any combination of such methods. B. When, after a reasonable effort has been made to obtain competitive bids, no offers are received for any item of City-owned personal property so declared to be surplus, the purchasing manager is authorized to dispose of such item for the highest scrap value that can be obtained therefore and if a reasonable effort to dc, so produces no opportunity to sell the same for scrap, the purchasing manager may cause its destruction or any other disposition thereof. C. The City may sell obsolete or surplus property to any other governmental acjency at an established fair market value without other bids. D. The City may donate surplus personal property to any agency or entity which is exempt from federal income tax, with the approval of the City Council. O~inance 328B Page 9 3.08.160 Recycled Product Procurement Policy A. All City departments, offices and commissions shall, at least annually, conduct a review of existing and future product and service specifications to determine whether existing specifications either require the use of products manufactured from virgin materials or exclude the use of recycled products, reusable products or products designed to by recycled. B. In the event that such specifications do exclude the use of recycled products or require the use of virgin materials, then such exclusions or requirements must be eliminated unless the pertinent department or entity can demonstrate to the satisfaction of the city manager that such recycled products would not achieve a necessary performance standard. C. All City departments and agencies shall, at least annually and following the review described in Subsection "A", above, recommend changes to the city manager to ensure that performance standards for particular products can be met and that specifications are not overly stringent, and to recommend changes to ensure that specifications will incorporate a requirement for the use of recycled materials, reusable products, and products designed to be recycled to the maximum extent practicable, subject to an alternative showing that either the performance of the product will be jeopardized or that the product will negatively impact health, safety or operational efficiency. D. Outside contractors bidding to provide products or services to the city, including printing services, must demonstrate that they will comply with the specifications described in Subsection C of this Section to the greatest extent feasible. E. City staff will, to the greatest extent possible, utilize high-speed copiers that will accept recycled paper. In addition, recycled paper shall be purchased and used in all copy machines that will accept it. F. When recycled products are used, reasonable efforts shall be undertaken to label the products to indicate that they contain recycled materials. City departments and agencies shall use for their masthead stationery and envelopes recycled paper that includes post-consumer recycled content and indicate on the paper and envelopes that they contain recycled material. Other recycled products used by the City shall also indicate that they contain recycled material to the extent practicable. G. A five percent price preference may be given to recycled products, reusable products offered as alternatives to disposable products, and products designed to be recycled where they are offered as alternatives to nonrecyclable products. H. The City will cooperate to the greatest extent feasible with neighboring City and county governments in an effort to develop a comprehensive, consistent and effective procurement effort intended to stimulate the market for recycled products, reusable products and products designed to be recycled. I. All related City departments shall work cooperatively to further the purposes of this Section. The City's economic development process shall incorporate the goal of stimulating the market for recycled material. Ordinance 32813 Page 10 .SECTION 3: Severabilit¥. If any section, subsection, sentence, clause, phrase, or portion of this Ordinance is for any reason deemed or held to be invalid or unconstitutional by the decision of any court of competent jurisdiction or by preemptive legislative action, such decision or legislative action shall not affect the validity of the remaining portion of this Ordinance. The City Council of the City of Rancho Cucamonga hereby declares that it would have adopted this Ordinance and each section, subsection, sentence, clause, phrase, or portion thereof, irrespective of the fact that any one or more sections, subsections, sentences clauses, phrases, or other portions might subsequently be declared invalid or unconstitutional or preempted by legislative action. SECTION 4: Penalties for Violation of Ordinance. It shall be unlawful for any person, firm, partnership or corporation to violate or to fail to comply with Section 3.08.070.B.4 of Chapter 3.08, as adopted by this Ordinance. Any person, firm, partnership or corporation violating or failing to comply with Section 3.08.070.B.4 shall be deemed guilty of a misdemeanor and upon conviction thereof shall be punished by a fine not exceeding One Thousand Dollars ($1,000.00), or by imprisonment not exceeding six (6) months, or by both such fine and imprisonment. Each and every person, firm, partnership, or corporation shall be deemed guilty of a separate offense for each and every day or any portion thereof during which any violation of Sections 3.08.070.B.4 is committed, continued or permitted by such person, firm, partnership or corporation, and shall be deemed punishable therefor as provided in this Ordinance. SECTION 5: The City Clerk shall certify to the adoption of this Ordinance and shall cause the same to be published as required by law. PASSED, APPROVED, AND ADOPTED this 15th day of April, 1998. AYES: Alexander, Biane, Curatalo, Williams NOES: None ABSENT: None ABSTAINED: None - /V~illiam J. Al~ander, ~layor Ordinance 328B Page 11 Al-rEST: I~ebra J. Ad~'CMC, City Clerl~ I, DEBRA J. ADAMS, CITY CLERK of the City of Rancho Cucamonga, California, do hereby cedify that the foregoing Ordinance was introduced at a regular meeting of the Council of the City of Rancho Cucamonga held on the 1st day of April, 1998, and was finally passed at a regular meeting of the City Council of the City of Rancho Cucamonga held on the 15th day of April, 1998. Executed this 16th day of April, 1998, at Rancho Cucamonga, California.